Former presidential aide, Reno Omokri has shed more light on the momentary policy introduced by the President Bola Tinubu-led administration.
OsunDailyNG recalls that yesterday, in line with Tinubu’s promise to carry out monetary policy reforms, the new management of the Central Bank of Nigeria (CBN) adopted a clean float foreign exchange management, a possibility it foreclosed for years.
In a press statement signed by its director in charge of financial markets, Angela Sere-Ejembi, the apex bank announced immediate changes to operations in the Nigerian Foreign Exchange (FX) market.
Speaking on the policy via his Instagram account, Omokri explained that floating the naira means that the Naira rate would now be determined by market forces.
He noted that if the citizenry chooses to purchase foreign goods like those allegedly sold in Labour Party Presidential candidate, Peter Obi’s Next Cash and Carry store, then the naira would collapse.
However, he stated that reverse would be the case if Nigeria goods and services, like Innoson Motors, and Globacom telecommunications products are patronized.
He wrote, “In case you don’t know what floating the Naira means, it means that the government will no longer determine the Naira rate. There will be only one rate. And that is the rate determined by market forces. This means that the more you buy foreign goods, like the ones you see in Peter Obi’s Next Cash and Carry, the more the Naira will collapse. And the more you buy made in Nigeria goods and services, like Innoson Motors, and Globacom telecommunications products, the more the Naira will rise.
“The immediate impact of this will be that our foreign and local reserves will rise, since the Central Bank of Nigeria will not have to defend the Naira by unnecessarily injecting Dollars into the forex market. Another consequence is that exporters and importers, as well as students, pilgrims, tourists and health tourists will no longer have to approach the CBN for allocations, since the CBN rate no longer exists. What will exist is the single exchange rate.
“Also, you will be able to travel with Naira and change it for Dollars, Pounds, Euro, Yuan, etc., abroad, as it was during the 70s and early 80s before Buhari’s coup against President Shagari’s government.”
