Review CRR, fix FX crisis — CPPE urges Chief Economic Adviser, Doyin Salami
By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE), an economic and private sector think tank, has advised Chief Economic Adviser to correct current distortions bedeviling the foreign exchange market and Encourage a review of the Cash Reserve Requirement for better financial intermediation in the banking system.
This is even as CPPE applauded the appointment of Dr Doyin Salami as the Chief Economic Adviser to the President.
This is according to a statement released by the organisation titled “CPPE lauds Salami’s appointment, sets agenda,” signed by Dr. Muda Yusuf, its Chief Executive Officer.
The organization stressed the importance of promoting fiscal deficit monetisation due to the severe inflationary consequences, as well as promoting the philosophy of a level playing field for all investors in the economy and resolving the port congestion crisis, cargo clearing constraints, and traffic gridlocks along the Lagos ports corridor.
The CPPE said that Dr Salami is bringing to this position a pedigree of intellectualism and robust knowledge of the nexus between sound economic principles, macroeconomic stability, investment growth and the welfare of the citizens. It also said that though coming rather late in the life of the administration, it is a fitting appointment nonetheless.
“His appointment perhaps signals the aspiration of President Buhari to reset the economy and correct some glaring distortions that have been undermining investors’ confidence over the last couple of years. It is imperative to refocus economic management strategy for growth, efficiency, productivity, sustainability and inclusion.
However, the impact of the appointment would be felt only to the extent that his advice and that of the economic advisory council are adopted and implemented to shape the course of monetary, fiscal and regulatory policies as well drive vital reforms,” the CPPE said.
According to the organisation, the impact of the appointment would be felt only to the extent that Salami’s advice and that of the economic advisory council are adopted and implemented to shape the course of monetary, fiscal and regulatory policies as well drive vital reforms.
The CPPE put forward a 10 points agenda for the new Chief Economic Adviser to the President, with the forex crises at the top of the list.
“The CPPE looks forward to the espousal of the following policy pathways to ensure a quick reset of the Nigerian economy for accelerated recovery and growth.
“Institution of a market based foreign exchange policy framework to correct current distortions bedevilling the foreign exchange market.
“This would ensure the normalization of the foreign exchange market and unlock capital inflows into the economy.
“Propose sustainable mix of policies to stem the intense inflationary pressures in the economy.
“Ensure the effective coordination between the fiscal and monetary policies.
“Ensure synergy between key economic and investment ministries and agencies to ensure policy and regulatory coherence.
“Infuse a general equilibrium mindset in the policy making processes to ensure a broaden comprehension of the impact of economic policies.
“Promote the reduction of fiscal deficit monetisation because of the profound inflationary outcomes.
“Promote the philosophy of a level playing field for all investors in the economy.
“Fixing the port congestion crisis, cargo clearing constraints and traffic gridlocks along the Lagos ports corridor.
“Foster a regime of trade facilitation culture among the agencies at our ports.
“Encourage a review of the Cash Reserve Requirement for better financial intermediation in the banking system.”
