- The former governor of the Central Bank (CBN) Chukwuma Soludo has called on the federal govenrmnet to stop playing politics with monetary policies
- Soludo said the apex bank must work towards eliminating multiple exchange rates in Nigeria and restrictions of 41 items banned by the bank
- He said the exchange rate and a good trade can be used to raise the tariff
The former governor of the Central Bank (CBN) Chukwuma Soludo on Wednesday, May 10, called on the leadership of the apex bank to desist from playing politics with monetary policies, Vanguard reports.
Soludo said the apex bank must work towards eliminating multiple exchange rates in Nigeria and restrictions of 41 items banned by the bank.
NAIJ.com gathered that while speaking at the eighth annual Pan African Investor conference in Lagos, the former CBN governor said fores policies in Nigeria aggravated the impact of oil shock to drive the economy into avoidable recession.
“With relative stability in forex and more so improved oil sector, economy will be out of recession, albeit from a very low base (GDP compression in US $); but collateral damage of previous errors will linger for a while (100 steps backwards but only 15 forward) as confidence and credibility take time to be restored," Soludo said.
“Sustained macro stability will be decisive for the success of the Economic Recovery and Growth Plan, ERPG.
The first is that we must stop playing politics with Foreign Exchange, FX, management," he said.
Soludo said the CBN's credibility must be rebuilt for confidence to return to the system over the medium time while apex bank tries to transparently ensure clear objectivity in its operations.
“You cannot unify the forex market, once you begin to discriminate and do all those kind of things for eligible transaction," Soludo added.
“There are two ways if you don’t want things to come in: you use the exchange rate and then you use the trade policy, raise the tariff.
“If it’s expensive for people to import, they will not import these items, but we have had this regime before, this whole concept of multiple rates is not advisable. You can with just one policy tomorrow eliminate them, then have one single market for all of this and then you have the interbank market to work, period," he said.
Watch this NAIJ.com video of Nigerians react to the economic recession raving the country: