Naira Exchange Rate will soon be transacting at the same level as other currency denominations, just as the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, opined that the Nigerian money is heading towards a unified market value.
The Minister’s statement was influenced by the most recent policy of the Central Bank of Nigeria, CBN, which aims to push the naira into achieving a uniform exchange level.
Mrs Zainab reiterated this message during the interactive session on the Medium Term Expenditure Framework, MTEF, in Abuja yesterday.
The meeting, put together by the House of Representatives Committee on Finance to get updates on the current position of the naira following the apex bank’s initial devaluation and inflation rates.
The Finance Minister believes that CBN’s new policy would halt the multiple swapping rates that have been bothering the nation’s economy.
Naira Exchange Rate Soon at Par With Other Currencies
Regardless of the position of the Minister, she later accepted the postulations that the policy would further compound the problem in the Nigerian capital market.
This reason, she said, would create a vacuum in which foreign investors will make conscious efforts to avoid the capital markets due to policy dictates.
In the long run, the entire idea about the naira achieving a unified transaction rate may not be feasible as experts, in the past, have argued it would require due process, especially if Nigeria starts increasing the value of its exports.