Business

What CBN should do to crash FX rate to N1000 per dollar – Aja

Financial expert Kalu Aja has urged the Central Bank of Nigeria to sell the Naira at a rate of N1000 to the US dollar.

Aja revealed this in a statement posted on his official X Twitter on Sunday.

Recall that the top bank was urged by the Association of Bureaux de Change Operators to examine the dollar allocation rate below.

The call was made in the midst of the Naira’s ongoing rise against the dollar on parallel and foreign exchange markets, which left the exchange rate at N1,251 per dollar on Friday.

However, he emphasized that as the nation receives 89% of FX earnings, the real economic fundamentals still need to be made public.

“It’s not magic. Sell dollars at N1000 and market prices will crash to N1000

“This is how all central banks across the world intervene in a floating market, they buy and sell currency in the floating market, It’s legal monetary policy

“The issue, as I have pointed out, is the Cost of the defense, not the defense. CBN has issued Bonds (FPI) and is using those bond proceeds to “defend” the Naira exchange value. The alternative is to use oil export earnings and it will have the same effect, strong Naira

“The real fundamentals Are unchanged, the oil revenues which make up 89% of forex earnings are still down. What the CBN has done is buy time for the executive to pump More oil, if that oil output changes, then the fundamentals have changed and the dollar pressure will ease to a new level”, he stated.

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Jonathan Nwokpor

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