‘Normalcy returning to foreign exchange market’

The Lagos Chamber of Commerce and Industry (LCCI) says the establishment of separate window for investors and exporters in the foreign market is restoring normalcy in the market.

The Director-General of the Chamber, Mr Muda Lawal, made the observation in an interview with the News Agency of Nigeria (NAN) yesterday in Lagos.

Lawal said the establishment of the window had relaxed some restrictions and widened the scope of transactions in the foreign exchange market.

According to him, the chamber is looking for bolder steps from the apex bank to further liberalise the foreign exchange market.

“The current CBN policy on the 41 items banned from the official foreign exchange market needs to be reviewed.

“We seek the cessation of the multiple windows in the foreign exchange market; multiplicity of windows hurts the economy.

“Investors need to be assured of the commitment of the CBN to market based exchange rate as enunciated in the Economy Recovery and Growth Plan (ERGP) of the Federal Government,” he said.

Lawal commended the CBN and the National Economic Management Team for the move toward market based foreign exchange regime which should be more efficient, transparent and sustainable.

According to him, the policy shift will boost investor’s confidence, impact positively on liquidity and reduce sharp practises that currently exist in the foreign exchange market.

He said that the policy would also boost transparency in non-oil exports, improve foreign exchange inflow from autonomous sources, reduce pressure on foreign reserves and boost stock market performance.