Review FOREX policy on 41 items to save Naira — CPPE tells CBN

The Central Bank of Nigeria (CBN) has been told to save the Naira from weakening against the dollar by reviewing its policy on the 41 items on the import list.

According to the Centre for the Promotion of Private Enterprise (CPPE), the CBN policy of denying importers of the 41 items on the list from accessing foreign exchange was among the reason Naira has continued to depreciate in value.

The Centre which is regarded as the economic think tank in its  economic and business environment review for 2021 and agenda for 2022 said the CBN should engage stakeholders as the forex policy has brought pain to investors and manufacturers.

According to a national daily report, the CPPE said, “In the bid to reduce the pressure on foreign reserves, the CBN had excluded over 40 items from access to foreign exchange in the official window.

“Some of the products on this list are intermediate products for some manufacturing firms which have negatively impacted some manufacturers, it would be advisable for the CBN to have a robust engagement with the stakeholders to review this list in the New Year.”

“Our proposition is that we should adopt a flexible exchange rate policy regime. We would like to clarify that this is not a devaluation proposition “Rather, it is a pricing mechanism that reflects the demand and supply fundamentals in the foreign exchange market.”

“It is a model that is sustainable, predictable and transparent; It is a policy regime that would reduce uncertainty and inspire the confidence of investors.

“It is a policy framework that would minimise discretion and arbitrage in the foreign exchange allocation mechanism. A flexible exchange rate regime is a policy choice adopted to cope with changing demand and supply conditions in the forex market.”