The President of the Lagos Chamber of Commerce and Industry (LCCI), Toki Magbogunje, has said that the adoption of NAFEX would improve the management framework of the naira.
She noted that multiple exchange rates had created volatility, subjecting the currency to “arbitrage”.
Magbogunje said this while briefing journalists on the state of Nigeria’s economy, in Lagos on Wednesday.
She said that the decision to harmonise the country’s exchange rate would strengthen the confidence of investors in the Nigerian economy.
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She stated, “LCCI welcomes the adoption of NAFEX as the official exchange rate. The unification is expected to improve the country’s currency management framework given that the multiple exchange rate system had been creating uncertainty issues and sources of arbitrage.
“The development is expected to bolster confidence of foreign investors in the economy.
“The move will also help the country to unlock external financing opportunities particularly from key multilateral institutions such as the World Bank and the IMF, who had for long advocated for a unified and flexible exchange rate system.
“However, we note the forex market is still faced with liquidity challenge. Many investors are lamenting about the difficulties in accessing foreign exchange for the importation of raw materials, equipment and critical inputs for production and processing.”
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