A former deputy governor of the Central Bank of Nigeria, Kingsley Moghalu has said once the Naira is floated as against the current manipulation by the federal government, it would find its true value.
Moghalu, the 2019 presidential candidate of Young Progressives Party (YPP) in a statement said the Naira/Dollar exchange rate rose to N470 from N500 after the central bank decided to let Nigerians receive dollar remittances in dollars demonstrating that once the Naira is floated Naira ’ll find true value, and it won’t be N500 to $1.
It should be recalled that CBN recently announced that beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US dollar) through the designated bank of their choice.
The apex bank said recipients of such remittances may have the option of receiving such funds in the foreign currency cash or into their domiciliary account.
Under the new guidelines, operators of export domiciliary accounts will continue to operate based on existing regulations which allow account holders use their funds for business operations only with any extra funds sold in the import and export window.
Also operators of ordinary domiciliary accounts where accounts are funded electronically or wire transfer, would be allowed unfettered and unrestricted use of these funds for eligible transactions. And where accounts are funded by cash lodgments, existing regulation will continue to apply.
Reacting, Moghalu said: “And as I have said before, a float must be accompanied by robust trade policy to protect infant industries that will manufacture for export. That’s the trick. B/w this and the attraction to potential investors of an economy with such a large market of 200 million, we’ll be OK.
“Protecting infant industries should not be by “bans” of import or forex allocation. It should be by differential tariffs on imports that make local manufactures more economically sensible for the average Nigerian. The super-rich can import champagne. If they can pay, I don’t care. #Ends.
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