Financial analyst Kalu Aja has urged the Central Bank of Nigeria, CBN to set the exchange rate of the Naira at N1000 to US dollars.
Aja made this recommendation in a statement released on Sunday via his official X handle.
It’s worth noting that the Association of Bureaux de Change Operators had previously appealed to the central bank to reassess the allocation rate of the dollar.
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.
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“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, a 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.
