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Published On: Thu, Mar 2nd, 2017

Onuesoke Faults CBN Release of Funds To FOREX Market

Chief Sunny Onuesoke

Chief Sunny Onuesoke


LAGOS MARCH 2ND (URHOBOTODAY)-Delta State Peoples Democratic Party (PDP) Chieftain, Sunny Onuesoke has faulted Central Bank of Nigeria (CBN) recently policy of releasing fund into the Foreign Exchange Market for payment of foreign schools fees and medical treatment and school fees abroad.
Onuesoke who spoke to group of journalists at Sokoto Intentional Airport,Sokoto State said although the policy had been able to temporary appreciate the Naira against the Dollar, he, however added that the measure would be short-lived because a sound FOREX economy should be determined by the factor of supply and demand.
He pointed out that well articulated and executed national economic recovery plan by the government remained the only enduring solution to the exchange rate and price instability, and not quick fixes from CBN, adding that it remains to be seen how long the present reprieve achieved by the one week old measure would last.
According to him, “To reverse the current downward trend in the value of the naira, a well-coordinated fiscal policies should be deployed to pursue import substitution and enhance the competitiveness of local production with a view to curtailing FOREX demand.
?”On the supply side, the government should fast track efforts to improve the ease of doing business and the state of infrastructure in order to attract foreign investments as well as develop multiple streams of earning foreign exchange. In my view, it is only when the supply of forex is guaranteed from diversified sources that the issue of market-determined value of the naira can be tabled for consideration.”
Onuesoke who stated that release of fund into the FOREX market has nothing to do with revamping of the economy, explained that the supremacy of any country’s currency depend on its vibrant internal GDP, adding that release of fund into FOREX market has no effect on the manufacturing, agricultural, construction, power and energy sectors.
“What CBN is doing is subsidizing the Naira in favour of Dollar. The strength of any currency in the world is base on the country’s GDP. That is your productivity. It is your productivity that strengthened the power of your currency. Today now our only source of general goods supply is oil. Now that the oil price is falling, where do we get the fund to sustain the economy of Nigeria?
“What they are doing is that they are killing the GDP. They are making local production to be weak. The CBN is killing our health sector for funding foreign medical treatment overseas? The CBN is killing our academic institutions for subsidizing school fees for foreign students overseas. What are we saying? Is that the change mantra they campaigned for? Was this policy not existing when Naira was N165 to a Dollar before Goodluck Jonathan left? “ Onuesoke who was PDP governorship aspirant 2007 general election queried.
While he insisted that the release of fund to FOREX will not resolve the energy problem in the country, Onuesoke suggested that the money that was released to the FOREX market recently would have been better utilize if it was converted to Naira and used to fund the energy sector.

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