Former Governor of the Central Bank of Nigeria (CBN), Professor
Chukwuma Charles Soludo, has asked on the federal government to push aside its
policy of various exchange rates.
Push Aside the Multiple Exchange rates - Prof. Soludo to FG and CBN
Prof  Charles Soludo
The former CBN boss claimed that was the only means to get
Nigeria out of this terrible economic trials and get back on the pathway of progress.

According to The Punch, Prof Soludo said that policy makers
must quash the present multiple exchange rates’ system and lessen the gap
between the official and parallel market exchange rates of the country’s
currency to a maximum of 3%-5%.
Prof Soludo praised the steps taken by the apex bank in the
last few weeks to reorganize the forex market, but maintained that there was
still miles to cover in bring back the economy to right track.
Soludo said: “With
regards to exchange rate, I can see quite some changes in the last few weeks. I
think some steps are beginning to be taken, but it is still quite a long way to
go to get to a stable and predictable level that eliminates the premium among
the multiplicity of exchange rates.

“Nigeria must get out
of multiple exchange rates and we must eliminate the premium, get it back on
track at a competitive exchange rate regime. The uncertainty that is created by
that is so enormous; and with the oil price rising and with the increase in oil
earnings, this is the time to take bold steps and do the needful.”

“On bold steps,
the template is not too far. We have done it before and it is just going back
to it. If it (the template) is not broken, why mend it? Get back and eliminate
the multiple exchange rate regime, eliminate the premium, or at least
significantly reduce it to not more than between three to maximum of five per
cent premium between the parallel and official exchange rates.

“On what it takes to
do it, that is basically known. Get the public finance okay; I can tell you
that with the momentum of what is going on in the rest of the world, by the end
of this year, we should 
actually be having stocks of reserves in the range of
about $50bn or $60bn.

“And getting Nigeria
structured and reengineered towards non-oil economy that again will require a
lot more serious work. The recession is not the issue. We will get out of it in
spite of government policy.

“I think this is a
time Nigeria should actually be making hard decisions to transit away from an
oil revenue economy and that’s the serious work.


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