by Economist Calls for Stability in Nigeria’s Foreign Exchange Market Amidst Economic Reforms
Muda Yusuf, a seasoned economist and former Director General of the Lagos Chamber of Commerce, has emphasized the necessity of minimizing volatility in Nigeria’s foreign exchange market to foster stability and confidence in the economy. Speaking on Channels Television’s Politics Today, Yusuf addressed the recent fluctuations in the foreign exchange market, stressing the importance of creating a predictable environment for investors and businesses alike.
The Nigerian currency, the Naira, has experienced significant fluctuations against the American dollar, with recent shifts ranging from around 1,900 to 1,100 Naira to a dollar. While the Naira’s rally to become the best-performing currency globally was celebrated, its subsequent retreat to around 1,300 Naira to a dollar in the black market has raised concerns.
Yusuf highlighted that persistent volatility in the foreign exchange market can undermine confidence, fuel speculation, and create uncertainty, ultimately impeding investment and economic growth. He emphasized the need for a concerted effort to minimize volatility and establish a stable exchange rate environment.
Addressing the ongoing economic reforms under the administration of President Bola Tinubu, Yusuf acknowledged them as a work in progress. He emphasized the importance of continuous learning and adaptation by the economic team to effectively address gaps in the foreign exchange market and implement reforms that promote stability and growth.
While recognizing the efforts of the Central Bank of Nigeria in addressing some imperfections in the foreign exchange market, Yusuf emphasized that more comprehensive measures are required to achieve a sustained and stable exchange rate. He called for a strategic framework to mitigate volatility and ensure a conducive environment for investment and economic development.
Yusuf’s insights underscore the critical need for stability in Nigeria’s foreign exchange market amidst ongoing economic reforms. As the country navigates through these reforms, minimizing volatility and fostering confidence will be essential to attract investment, spur economic growth, and enhance overall prosperity.
