Naira Depression and What Sanusi Can Do (I)a

On May 30th 2010, a group of financial engineers collectively called NEMT pulled their attention together to hear out finance Minister. This group includes ministers of Agriculture, commerce, and industry, power, Transport, works, and National planning. There were trying to solve the problems of the economy, they were confronted with issue of current exchange rate which was then and now 150 Naira for a dollar.

This of course has nothing to do with inflationary pressure from High Tariff, the group argued that certain product considered embargo should be exited from federal customs and taxed in many right ways. The question that remains to be answered is whether the NEMT did not know how to solve the problems of the depreciating Naira, and if they didn’t know how, we question their silence on the matter.

If we slash Tariff across the board by 49% on a one time ‘three month’ agility for deeper 26%, then the next step will be curbing the depreciation through blocking super currency importation to Nigerian through Western Union, Vigo, and of Eastern Union others. These steps will in one hand flood the commodity markets and on the other hand, put a brake on notional windfall of the Naira. They will be shortage of certain currency which Crude oil and direct Auction instead of parallel market should more than provision for.