How CBN Can Lower FX Rate to N1000 per Dollar – Aja’s Suggestions

How CBN Can Lower FX Rate to N1000 per Dollar – Aja's Suggestions

A financial expert, Kalu Aja has told the Central Bank of Nigeria to sell the Naira at an exchange rate of N1000 to USD.

Aja disclosed this in a statement on Sunday on his official X handle.

Recall that the Association of Bureaux de Change Operators begged the apex bank to review the allocation rate of Dollar below

The call came amid the continued appreciation of Naira against dollar both at foreign and parallel exchange markets resulting in the exchange rate standing at N1,251 per dollar on Friday.

He, however, stressed that the real economic fundamentals remain unchanged as the country gets 89 per cent of FX earnings.

“It’s not magic. Sell dollars at N1000 and market prices will crash to N1000

“This is how all central banks across the world intervene in a floating market, they buy and sell currency in the floating market, It’s legal monetary policy

“The issue, as I have pointed out, is the Cost of the defense, not the defense. CBN has issued Bonds (FPI) and is using those bond proceeds to “defend” the Naira exchange value. The alternative is to use oil export earnings and it will have the same effect, strong Naira

“The real fundamentals Are unchanged, the oil revenues which make up 89% of forex earnings are still down. What the CBN has done is buy time for the executive to pump More oil, if that oil output changes, then the fundamentals have changed and the dollar pressure will ease to a new level”, he stated.

 

SOURCE: DailyPost

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