An economist, Mr Femi Awoyemi says the directive by Central Bank of Nigeria (CBN) to banks to open Foreign Exchange sales point at airports was a temporary solution to ease dollar demand.
Awoyemi, who is the the Chief Executive Officer of Proshares Nigeria Ltd., Lagos made said this in an interview with the News Agency (NAN) on Tuesday in Lagos.
He said that the directive would not permanently bridge the wide exchange rate between the official and parallel market.
NAN reports that to ease the burden of travellers, CBN had directed all banks to open Foreign Exchange outlets to sell dollars and other hard currencies at major airports.
According to CBN acting Director of Communications, Mr Isaac Okorafor, the banks are to do so as soon as logistics permit.
Okorafor said that this would also ensure that transactions were settled at much more competitive exchange rates.
Similarly, the apex bank said it would provide additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees.
According to Awoyemi, the directive is just an interim measure to manage the demand for foreign currencies which has been inadequate.
“The unavailability of forex is caused by the decline in the price of crude at the international market.
“To halt the fall of the naira and bring it to manageable limit, government should allow the forces of demand and supply in determining the rate of the naira.
“Liberalisation of the foreign exchange policy is the solution to the challenges because it will encourage investment inflow.
“Allowing the forces of demand and supply to drive the process will lead to stability of the naira,” he said.
He urged Nigerians to invest more in agriculture and its value chain to augment the country’s earnings.
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