Don’t Float Naira, Uwaleke Warns CBN

An economic expert, Prof Uche Uwaleke, on Wednesday urged the Central Bank of Nigeria (CBN ) to tread with caution in their decision to float the naira.

In a media interview, Uwaleke said Nigeria’s apex bank must ensure the economy was sufficiently diversified before considering the option of floating the nairaIn the meantime, he urged the CBN to maintain its intervention in the Forex market as it had resulted in increased supply of Forex in the economy.

He said “In the light of the favourable international oil market condition, the CBN interventions in the Forex market should be sustained.

” As long as the source of the Forex remains chiefly oil, the apex bank should continue to ignore calls to float the naira until the export base of the economy is sufficiently diversified.

” The recent Forex rules have also resulted in improved access to Forex, especially for invisibles to the extent that banks are now encouraging their customers to come for BTAs etc.

” In view of the less stringent conditions attached, the requirement for tax clearance certificate has been removed.

“The CBN’s directive with respect to opening offices at airports and the use of dedicated teller points by commercial banks has also contributed to improving access to forex.”