Ezekwesili makes case for review of nigerias foreign exchange policy
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Ezekwesili Makes Case for Review of Nigeria's Foreign Exchange Policy
Former Minister of Education and leading economic expert, Oby Ezekwesili, has called for a comprehensive review of Nigeria's foreign exchange policy, citing its negative impact on the country's economy.
Speaking at a recent economic forum in Lagos, Ezekwesili argued that the current foreign exchange policy, which is managed by the Central Bank of Nigeria (CBN), has failed to address the country's foreign exchange challenges, leading to a decline in the value of the naira and a rise in inflation.
According to Ezekwesili, the CBN's policy of managing the foreign exchange market through a combination of official and parallel markets has created a system that is prone to manipulation and corruption. She noted that the official market, which is supposed to be the primary source of foreign exchange for legitimate businesses, is often plagued by scarcity and high prices, while the parallel market, also known as the black market, is characterized by high rates and lack of transparency.
"This dual market system has created a culture of corruption and rent-seeking, where those with access to foreign exchange at the official rate are able to exploit the system and make huge profits, while those who are forced to use the parallel market are left to suffer," Ezekwesili said.
Ezekwesili also criticized the CBN's policy of restricting access to foreign exchange for certain sectors of the economy, such as the agricultural sector, which she argued has hindered the growth of the sector and led to food insecurity.
"The CBN's policy of restricting access to foreign exchange has made it difficult for farmers to import the inputs they need to produce food, leading to a decline in agricultural production and a rise in food prices," she said.
Ezekwesili also called for the introduction of a more transparent and market-based foreign exchange system, which would allow for the free flow of foreign exchange and reduce the role of the CBN in managing the market.
"We need a foreign exchange system that is transparent, market-based, and allows for the free flow of foreign exchange," she said. "This would help to reduce the role of the CBN in managing the market and create a more level playing field for all businesses."
In conclusion, Ezekwesili emphasized the need for a comprehensive review of Nigeria's foreign exchange policy, citing its negative impact on the country's economy and the need for a more transparent and market-based system.
"We need to rethink our foreign exchange policy and adopt a more transparent and market-based approach," she said. "This would help to create a more stable and prosperous economy, and ensure that Nigeria is able to achieve its full potential."