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Economy needs international funding to raise dollar liquidity— Chukwu

Leading financial analyst and Chief Executive Officer of Cowry Asset Management Limited, Mr. Johnson Chukwu has said that all the federal government need to do now is to To boost dollar liquidity, he said in the short term, the country needed to access funding from international funding institutions or trading partners.

while explaining that “one of the financial policies implemented by the present government to consolidate all inflows from all the federal ministries, departments and agencies (MDAs) in the country to a single account at the apex bank, TSA need to be tied to a digital platform that will enable dedicated government monitors to see the balance at a glance on a daily basis.

These, according to him, will lead in the restoration of investors’ confidence of both local and foreign investors, boost dollar liquidity in the currency to restore confidence and stabilise the exchange rate.

He said Nigeria as it is now has to either access funding from multilateral agencies or bilateral agencies or both. The multilateral agencies he said include the International Monetary Fund (IMF), the World Bank and the African Development Bank (AfDB).

According to him, “The bilateral partners he added include China, Japan, United States, India and India and Britain, adding that it will be short term measures. In the medium term, he added that the country needed to open up the economy for foreign capital beyond purchase/sale of crude oil.

This, he said, would come in form of either concessioning of some of the nation’s infrastructural facilities that are commercially viable or the sale of some of government assets that are sub-optimally producing.

Besides, Chukwu called for the re-injection of liquidity into the local economy, and to inject liquidity into the banking system by reducing the cash reserve ratio of the monetary policy rate.

He maintained that the government needs to have articulated policy that will contain some of the policy issues mentioned, adding it will show the investing public that the government is open to private capital; again, that it is open to solicit and attract foreign capital so as to restore confidence.