Naira Depression and What Sanusi Can Do (III)a

By

Sampson Iroabuchi Onwuka


....Before Soludo was a different Sanusi by name Joseph Sanusi, who entirely blocked the capitulation of Naira in Nigeria and within the interim, Naira stabilized but then he was engineered out of office as CBN Chairman in matter of months. Joseph Sanusi was not without traces of corruption, but from a market perspective, his financial ‘doctors’ were well aware of the situation in Nigeria and helped burnish to his view about the cryptic money transfer to Nigeria to redeem in dollars and pounds sterling instead on Naira, which was endemically squeezing life out of the local unit of exchange, the Naira.

So how do we solve the problem of the depreciating Nigerian Naira short term? We can solve the problem through a coordinated embargo on foreign currency on any Nigerian or non Nigerian living abroad, sending money to Nigeria to receive in any other currency other than Naira. That they, including their business men must by matter of rule redeem the money through the Naira. Acquiring the foreign currency from Nigeria can then be achieved as it is from direct Auction and direct currency exchange executed on line and by CBN.

Secondly the issue of parallel market which still exists in various forms should be done away with completely even it means re-educating Nigerians, including the Mallamia, and other Northerners on the act of currency trade on line, which does not mean that they will be damned by the acts. No, they can’t, since Nigerians and other visitors are making it to the country daily through dollars. But as far quoting on top of exchange rate, there is need for redemption. 3, there is a need for currency board in most countries for ‘Currency board’ which entirely regulates the availability of foreign currency in any country, which should include Nigeria. There is also the issue of currency hedging which must concern Nigerians and those who have the special angle of managing their wage and price.