The Centre for the Promotion of Private Enterprise (CPPE) has lauded the bold step taken by President Bola Tinubu administration towards the unification of the naira exchange rate, saying it will boost government’s revenue by a minimum of N4 trillion through additional remittance of surplus to the federation account by the CBN. The Centre also pointed out that the liberalisation of the foreign exchange market would unlock the huge potentials for investment, jobs, capital flows and positively impact investors’ confidence. Director of the Centre, Dr Muda Yusuf, who made the remark, however opined that the CBN should position itself for periodic intervention in the forex market, as and when necessary, to stabilise the exchange rate and prevent volatility, saying this should happen not by fixing rate, but by boosting supply to the extent that the reserves can support. Yusuf clarified that the unification was not a devaluation policy, but a pricing mechanism that reflects the demand and supply fundamentals in the foreign exchange market. “It is a framework which allows for flexible rate adjustments as and when necessary. The model is predictable, equitable, transparent and sustainable.”

Sun