The Alliance for Democracy (AD), one of the opposition parties in Nigeria has said the recent Central Bank of Nigeria’s policy (CBN) to increase monetary rate and cash reserve requirement to 12percent each, and reduce the net open foreign exchange to 1percent, in order to reduce the demand for foreign exchange and improve the value of naira, would not provide a lasting solution to the dwindling value of naira.
In a statement signed by the National secretary of the party, Rafiu Salau, and made available to LEADERSHIP WEEKEND in Abuja yesterday, the party insists that the policy cannot ensure economic growth, as it does not secure productivity or reduce economic hardship; economic activity will slow down because access to credit will be difficult, which will result to inflation.
The party said the best solution to the dwindling value of naira is backward integration policy that will increase our exports and reduce import, adding that Nigeria should start producing some of the products they import.
AD called on the CBN to ensure that the country’s foreign exchange has not been used to import dust and irrelevant items as witnessed in the past.
“CBN should ensure that the source of the naira pursuing our foreign exchange is genuine. If fake naira is used to buy our foreign reserves, the value of naira will continue to decline no matter the effort to protect it.”