The founder of Stanbic IBTC and ANAP Foundation, Atedo Peterside has faulted the Federal Government efforts in trying to make the Naira appreciate against the Dollar in a hurry. will not work.
Speaking during an interview on Channels Television’s Politics Today on Thursday, Peterside said the move will not work.
The IBTC founder, therefore, faulted the urgency with which the President Bola Tinubu-led administration wants the Naira to appreciate against other foreign currencies. Peterside described the move as not the best approach.
He, however, exonerated the Tinubu’s administration from the current woes of the Naira.
According to him, “The best approach would be for the Central Bank to stabilize the Naira to a level where they can sustain it for some time and gradually build the reserve.
“I will be fair to this Government, they inherited the exchange rate problem. And what they have been doing is trying to manage it. Recently, I would have thought, let’s get some stability around N1,300 or N1,400. Don’t be in a hurry to appreciate the exchange rate.
“Going to sell Dollar to Bureau de Change at N1,000, N1,050, those guys will turn round two weeks later and sell it at N1,400, N1,500. And they go away laughing. What’s the point for that?
“It’s better to have some stability they can sustain. Keep the Naira between N1,300 and N1,300. Which looks to be the natural equilibrium band today. Keep it there for a while and build up your reserve to let confidence come back.
“So, stop trying to appreciate the Naira in a hurry. It’s not going to work,” he said.
Peterside, however, advised the Government to start doing things right. By building confidence among investors and to stop reckless spending.
The financial guru pointed that the habit of doing five things right and doing two things wrong will not help the government achieve anything tangible.
He, therefore, added that the Tinubu’s monetary policy is on the right direction, but that the Government should tackle huge fiscal indiscipline.
Recall that in March, the Naira had earlier fallen to around 1,900 to a Dollar. But, through interventions by the CBN, it later rallied to around 1,100. That feat necessitated the Naira been declared as the best-performing currency in the world.
However, in May, the Naira has again retreated to around 1,500 to a Dollar in the black market.
source: Vanguard
