‘CBN’s Forex Window Will Boost Investors’ Confidence in the Economy’
A fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Mr. Joseph Babayemi, has said that the forex window recently created by the Central Bank of Nigeria (CBN) for investors and exporters has not only succeeded in boosting liquidity in the forex market, but has also ensured timely execution and settlement of eligible transactions.
Speaking on the impact of the forex window on the economy, Babayemi said the CBN’s sustainability of its intervention in the forex market would equally reinforce the confidence of the Nigerian investors and the international community in the nation’s economy.
He commended the CBN for not only being able to curb excesses and supply shortfalls since its intervention policy, but also for its ability to prevent volatility in the FX market and reduce the gap between the official and parallel markets’ exchange rates of the naira.
According to him, this strongly indicates that the apex bank is on track.
The financial expert noted that with the opening of the special window, Small and Medium Enterprises (SMEs) operators would no longer have to patronise or source forex through unofficial windows, stressing that there won’t be any more pressure on either the Bereau De Change operators or any other unofficial source.
Babayemi, who attributed the depreciation in the naira to depletion of foreign reserves by successive administrations, drop in oil price at the international market and attacks on oil facilities by militants, however, explained that that the CBN’s intervention had enabled the apex bank to be gradually winning the battle to give the naira its value against major international currencies.
The chartered accountant, however, urged the government to checkmate the trend of inflation in the country by not only ensuring the reduction of the people’s dependence on imported goods, but by also creating an enabling environment that will be attractive to investors and small scale business owners.
This he said will have positive effects on the naira, provide job opportunities and bring down inflation to an acceptable limit.
He added that there is the urgent need for the diversification of the economy with massive investment in agriculture and in improving the infrastructure like steel, rail transportation and power.
Babayemi noted that the government should take bold steps in blocking all tax related loopholes and ensure that effective systems are on ground for strict compliance.
The financial expert, who noted that the country was blessed with enormous human, material and natural resources, advised the government to give urgent attention to the raging unemployment situation in the country by encouraging entrepreneurship and innovations as a way of creating new products and market demand, as well as give necessary support to small and medium business owners in the areas of funding, accessibility to raw materials and technical training.