Ned Nwoko Urges CBN Caution Amid Naira’s Rise Against Foreign Currencies

Ned Nwoko Urges CBN Caution Amid Naira’s Rise Against Foreign Currencies

Senator Ned Nwoko of Delta North has penned a cautionary letter to the Federal Government and the Central Bank of Nigeria (CBN), advising against hasty measures to artificially inflate the Naira’s value against foreign currencies. In his statement issued in Abuja, Nwoko emphasized the need to address the fundamental causes of Naira depreciation rather than opting for quick fixes…..READ ALSO Brother Of Regina Daniels Challenges Ned Nwoko’s View On Marrying Non-Virgins

He emphasized that economic freedom and currency strength are ongoing pursuits, necessitating continuous policy review and consideration of new approaches. Nwoko highlighted the importance of a nation’s currency value in fostering international respect and cooperation, stressing the imperative for Nigeria to bolster Naira demand.

As a significant exporter of crude oil and other commodities globally, Nwoko advocated for the exclusive use of Naira in transactions involving these goods. He suggested that this approach would incentivize buyers to seek out Naira, thereby driving its appreciation due to increased demand and scarcity.

Furthermore, Nwoko called for a reassessment of the foreign reserve policy, criticizing the practice of holding reserves in foreign jurisdictions as counterproductive to Nigeria’s economic sovereignty. He questioned the rationale behind this practice, particularly in light of Nigeria’s colonial legacy.

Nwoko argued that the recent appreciation of the Naira cannot solely be attributed to the CBN’s measures but also to the decline in refined oil imports following the production and distribution of refined petroleum from the Dangote refinery. He emphasized the need for similar successes in other sectors to address the root causes of Naira devaluation effectively.

While acknowledging the CBN’s efforts to combat dollarization and stabilize the Naira, Nwoko cautioned that until the underlying issues driving Naira devaluation are addressed comprehensively, efforts against dollarization may yield limited success.

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