Reason For Depreciation Of Naira – UNIBEN Professor Of Economics

Reason For Depreciation Of Naira – UNIBEN Professor Of Economics

Hassan Oaikhenan, a professor of Economics at the University of Benin, Benin City, has attributed the depreciation of the naira to excess naira in circulation chasing the few dollars.

Oaikhenan urged the Central Bank of Nigeria (CBN) to limit the supply of the naira using the currency redesign as an opportunity to take firm hold of the supply of the naira.

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“The way to go, therefore, is that now that the denominations are redesigned, then it is up to the CBN to as much as possible, limit, control, manage, tighten the quantity of the redesigned currency.

“Especially the higher denominations in circulation have to be properly managed so that at the end of the day, this phenomenon of too much naira chasing few dollars can be addressed.

“If that is sustainably done, then we will see an improvement of the exchange rate of the naira to the dollar,” he said. (NAN)

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