The Centre for the Promotion of Private Enterprise, has urged the Central Bank of Nigeria to assess its restriction on some of the over 40 imported items the apex bank blacklisted from receiving foreign exchange.
The economists also added that it was needful for the CBN to evaluate its foreign exchange policy in 2022 with a view to enhancing dollar liquidity so as to save the declining naira and help industries to grow.
This was contained in the council’s economic and business environment review for 2021 and agenda for 2022.
It stated that there is a need for the CBN to engage with stakeholders as the present forex policy regime is adversely affecting investors, manufacturers and other stakeholders.
The CPPE said, “In the bid to reduce the pressure on foreign reserves, the CBN had excluded over 40 items from access to foreign exchange in the official window.
“Some of the products on this list are intermediate products for some manufacturing firms which have negatively impacted some manufacturers. It would be advisable for the CBN to have a robust engagement with the stakeholders to review this list in the New Year.”
The organization advised the CBN to adopt a flexible exchange rate policy regime, and give room for the pricing mechanisms to reflect the demand and supply fundamentals in the foreign exchange market.
It said, “Our proposition is that we should adopt a flexible exchange rate policy regime. We would like to clarify that this is not a devaluation proposition.
“Rather, it is a pricing mechanism that reflects the demand and supply fundamentals in the foreign exchange market. It is a model that is sustainable, predictable and transparent. It is a policy regime that would reduce uncertainty and inspire the confidence of investors.
“It is a policy framework that would minimise discretion and arbitrage in the foreign exchange allocation mechanism. A flexible exchange rate regime is a policy choice adopted to cope with changing demand and supply conditions in the forex market.”
