Monday 29 May 2023

Tinubu Promises Review Of Naira Swap Policy

President Bola Tinubu in his inaugural speech, on Monday, outlined a series of monetary policy reforms aimed at revitalising the Nigerian economy.

Addressing the nation, President Tinubu emphasised the need for a thorough house-cleaning in the monetary policy landscape.

According to him, with a focus on unifying the exchange rate, reducing interest rates, and reviewing the currency swap policy, his administration aimed to promote investment, stimulate consumer purchasing power, and foster financial inclusivity.

He stressed the urgency of implementing a unified exchange rate system, which would redirect funds from arbitrage and encourage meaningful investments in the real economy.

In his words, “We must align our monetary policies to promote sustainable investments in plant, equipment, and job creation, which are the driving forces behind economic growth.”

To support this vision, Tinubu pledged to reduce interest rates, aiming to stimulate investment and enhance consumer purchasing power.

By making credit more accessible and affordable, he said the administration hopes to empower individuals and businesses to contribute to a stronger economy.

He said, “lower interest rates will facilitate investments that can sustain our economy at a higher level, while also allowing consumers to make purchases that drive economic activity.”

Tinubu’s address also touched upon the contentious issue of the currency swap policy implemented by the Central Bank of Nigeria (CBN).

Acknowledging its concept, the President expressed concern over its harsh application, particularly given the significant number of unbanked Nigerians.

He declared that the policy would be carefully reviewed under his administration.

In the meantime, he said both currencies would be considered legal tender, providing reassurance to citizens and ensuring stability in financial transactions.

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