The founder of Stanbic IBTC and ANAP Foundation, Atedo Peterside, has faulted President Bola Tinubu’s frantic approach to strengthening the Naira against the dollar and other foreign currencies.
Peterside, who was on Channels Television’s Politics Today on Thursday, exonerated the current administration from the depreciation of Naira, but insisted that hurrying to make the currency gain strength would not work out.
According to him, the best approach would be for the Central Bank of Nigeria (CBN) to stabilise 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 between N1,300 and N1,300 which looks to be the natural equilibrium band today, keep it there for a while, 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,” Peterside said.
The national currency, which had earlier fallen to around N1,900 to a dollar, later rallied to around N1,100, and was declared as the best-performing currency in the world.
However, the Naira has again retreated to around 1,500 to a dollar in the black market, earning it the notoriety of the worst-performing currency in the world.
Peterside also advised the government to start doing things right to build confidence among investors and stop reckless spending that will make them look irresponsible.
According to him, the habit of doing five things right and doing two things wrong will not help the government achieve anything tangible.
The economist said the direction of Tinubu’s monetary policy is on the right track, but what is on the wrong track is the huge fiscal indiscipline that comes from the top now and again.