The Association of Bureaux Des Change Operators of Nigeria ABCON, has asked the Central Bank of Nigeria CBN, to float the naira to halt its further depreciation.
President of ABCON, Alhaji Aminu Gwadabe made the appeal on Saturday in an interview wik in Lagos.
Gwadabe said that the CBN should do all it can to undertake a sustained injection of dollar in the market to reverse the loss in the value of the naira at the parallel market.
“It might sound counterintuitive but the way out of the current frenzy is to abolish the official fixed exchange rate and allow the Naira to float.
” CBN should contemporaneously undertake a large-scale dollar intervention in the open market that can inspire confidence in the Naira and checkmate the current tailspin.
The financial expert advised the Apex Bank could gradually buy back the Dollars used in its intervention from the open market at a lower exchange rate for a decent profit.
He argued that the next phase would be to strengthen the naira in the medium to long term, adding that both fiscal and monetary policies should be aligned to stimulate the tradable sector.
On CBN’s Monetary Policy Rate (MPR) at 13 per cent, Gwadabe said that the adjusted rate would stifle growth.