Business Hilights
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Dollar heading to N1,000 if CBN fails to review monetary policy framework—-Boyo

Leading Economist and finance analyst, Mr. Henry Boyo, has predicted that the naira will hit 1000/dollar on the parallel market in 2017 if the Central Bank of Nigeria (CBN), fails to review its monetary policy framework immediately.

Since this year, naira has continued to see steady fall starting from N398 in first week of January and the CBN seemed confused on how to rightly calibrate the monetary policy to halt the erosion of naira value against the dollar and other currencies.

Other analysts have argued that the first step amongst others will be lift the forex ban on 41items so that some of the closed manufacturing firms that had closed will be revived.

The National Economic Council (NEC) demands the immediate review of the current foreign exchange policy by the CBN; this is coming at a time the naira crashed to a new record low at parallel market as it now trades at N516 per United States dollar since Thursday, February 16

The State governors who expressed concerns over the continued widening gap between the inter-bank foreign exchange and parallel market rates are jittery on the possible erosion of their 2017 budgets.

The NEC meeting presided over by the Acting President; Yemi Osinbajo made its position clear saying time has come to halt the parallel devaluation of naira so that the 2017 budgets will continue to remain afloat with realities.

Governor Tanko Al Makura of Nasarawa, who briefed journalists at the end of the National Economic Council (NEC) meeting in Abuja said the council, which was presided by acting president Yemi Osinbajo, expressed serious concern over the current situation of the exchange rate, especially the gap between inter-bank and the parallel market rates, Premium Times reports.

The council therefore called on the CBN Governor, Godwin Emefiele, to do something immediately.

Business Hilights had last week argued that if the trend of naira free fall continues, many states budget will become unimplementable as capital budgets with material components coming from aboard will be hanging.

In a quick succession, starting from Wednesday last week, the Naira plummeted at the parallel market from N510/dollar on Wednesday, February 15, to a new record low of N516/dollar.

The local currency also depreciated to N630 against the Pound sterling from N625 and crashed against Euro to trade at N538 from N535.

Dealers in Lagos Island sold the greenback at N516 and bought same for N513. The situation was the same at Murtala Muhammed International Airport, Lagos.