Onuesoke tasks CBN on release of funds to Forex Market

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A chieftain of Peoples Democratic Party, PDP, in Delta State, Mr Sunny Onuesoke, has advised the Central Bank of Nigeria, CBN, on its recent policy of releasing foreign exchange to the market for school fees, medical treatment and manufacturing sector.

Onuesoke, who spoke to newsmen in Warri, Delta State,  said although the policy has been able to temporarily appreciate the Naira against the Dollar, the measure would be short-lived because a sound forex economy should be determined by the factor of supply and demand.

He said that a well articulated and executed national economic recovery plan by the Federal Government remained the only enduring solution to the exchange rate and price instability and not a quick fixe by the CBN.

According to him, “To reverse the current downward trend in the value of the naira, a well-coordinated fiscal policy should be employed to pursue import substitution and enhance the competitiveness of local production with a view to curtailing forex demand.”

“On the supply side, the government should fast track efforts to improve the ease of doing business and the state of infrastructure in order to attract foreign investments as well as develop multiple streams of earning foreign exchange. In my view, it is only when the supply of forex is guaranteed from diversified sources that the issue of market-determined value of the naira can be tabled for consideration.”

Onuesoke, who said that the release of forex to the market has nothing to do with revamping of the economy, explained that the supremacy of any country’s currency depended on its vibrant internal GDP, adding that release of forex to market has no effect on the manufacturing, agricultural, construction, power and energy sectors.

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