The Falling Of Naira: Economist Bismarck Rewane Unveils Root Causes And Calls For Critical Policy Shift

The Falling Of Naira: Economist Bismarck Rewane Unveils Root Causes And Calls For Critical Policy Shift

Renowned economist and CEO of Financial Derivatives, Bismarck Rewane, sheds light on the persistent depreciation of the Naira, pointing to crucial factors behind the unsettling decline….Read More Related Story Here Black Market Dollar To Naira Exchange Rate: February 6, 2024 – Latest Rates Unveiled

The Naira, Nigeria’s currency, has experienced a sharp drop against major currencies, notably exceeding N1,400 to the dollar in the parallel market.

Rewane identifies the primary culprit as the low influx of forex, emphasizing, “One is low supply – supply of dollars. When you have low dollars, anytime the supply is short, the price increases.”

Adding another layer to the complexity, the economist underscores a “loss of confidence in the currency as a store of value.” This erosion of trust further compounds the challenges facing the Naira.

Rewane goes on to pinpoint restrictions and exchange rate controls as contributing factors to the currency’s downfall. He contends that these policy measures have played a role in exacerbating the situation.

In a bold assertion, Rewane highlights the discrepancy in Nigeria’s economic strategy, criticizing the nation for exporting crude oil without prioritizing the supply to the Dangote Refinery. This oversight, according to him, exacerbates the economic imbalance.

As the Naira continues its downward spiral, Rewane advocates for a critical reevaluation of economic policies to address the root causes and restore confidence in the national currency.