Avoid flip- flop to restore confidence in economy, FG advised

THE Managing Director of FSDH Merchant Bank, Bukola Smith, has urged the government must avoid policy flip- flops to restore confidence in the economy with a focus on the investment market.

Speaking at the bank’s breakfast series, which focused on RT200 Foreign Exchange Programme, Smith believes consistency in predictable policy direction would raise the confidence of foreign investors, which is necessary to boost foreign exchange earnings.

She noted that policy inconsistency has led to the drastic reduction in export earnings, a situation that has triggered a deficit in the country’s current account. She challenged the country to strive to bridge the growing gap between imports and exports.

The banker said the government works hard to shore up the country’s dwindling external reserves to avert a major crisis.

The gross reserves dropped to $ 39.04 billion on Wednesday, the last time it was updated. The figure is the lowest year- to- date ( YTD).

Smith told the participants at the meeting that a consistent fall in the reserves was a major red signal the nation