Bank Directors Chair Canvasses Stability As Naira Bumps 10% In Official Market

Chairman Bank Directors Association of Nigeria, Mr Mustafa Chike-Obi has called on the nation’s monetary authorities to focus on the long-term stability of the foreign exchange over other considerations including a fixed and overvalued naira in the official markets.

Chike-Obi who is also chairman of Fidelity Bank said the markets and the economy will be more comfortable with a stable naira over the frequent oscillations which he said does not give room for planning. According to him lack of stability deters investors as it does not allow room for planning.

GWG.ng reports that he spoke just as the naira bumped 10% rising from N927.19/$ to N837.77 to the dollar in the official markets on Monday, December 4, 2023. The gain in the official market for the naira was, however, reflected a little in the black market as the naira rose to N1,160 to the dollar on Tuesday in trading in Lagos.

Speaking against the background of the instability of the naira in the official market, Chike-Obi said:

“The exchange rate is a result of the government policy it is not an economic policy. So, if we focus on exchange rate A, B, C, D, it must be underpinned by what you want your economy to do. I think we want the economy to grow, I prefer stability in exchange rate than fixing an amount,” Chike-Obi said in an interview on Arise News Television monitored by GWG.ng

“If the CBN tells us tomorrow that we are going to do an exchange rate of between 1,000 and 1,200 for the next five years, I think the economy will accept that, adjust to it and people can plan. But it is the volatility of the exchange rate that is creating problems. One day, 750 on the official window and next day it is 800. We should have a stable and very sustainable rate and we will adjust to it. My guess is that it should be between 1,000 and 1,200 and we should support it there. You will be surprised how many investors will come in when the exchange rate is stable.”

Meanwhile, GWG.ng reports that the naira appreciated against the dollar on Monday, 4th December 2023, as it closed at N837.77/$1 at the official market.  

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