Nnamdi Nwizu, Co-Managing Partner/Founder of Comercio Partners Limited, an investment banking company, and Peter Elege, Managing Director/Chief Executive of PFI Capital Limited, are among the CEOs who have voiced their opinions on the matter.
ABCON President, Aminu Gwadabe, emphasized the negative impact of multiple exchange rates on the stability of the naira. He pointed out that such a system encourages illegal economic activities such as hoarding, currency substitution, round tripping, and other undesirable practices.The unification of the exchange rate will result in a competitive rate that eliminates the unethical practices and challenges faced by the naira. Furthermore, it will facilitate genuine market discovery, ensuring a fair and transparent marketplace without any monopolistic tendencies.
“You will have competition and in a competitive market, goods and services are always available.
So and it will encourage the inflow of foreign portfolio investment, because the investors are now comfortable as the market will become liquid for free entry, free exit.
“Even the diaspora remittance will also be competitive and there will be incentive for people, because now the multiplicity of exchange rate is diverting all transactions to an inefficient informal market. Most of the inflows that are supposed to come is not that they are not coming but they are being traded in an inefficient informal market. So nobody is seeing it.
“As a group we endorse, we support, we align with the decision to unify the exchange rate and then the use of the BDCs as a transmission mechanism to achieve that intention of uniform exchange rate. The BDCs have been able to play a role of providing liquidity into the retail end of the forex market which now helps in reducing the gap between the buying and the selling rate which will now entails the true value of the naira.”
