Emmanuel OchayiChairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has disclosed plans by the Federal Government to introduce new foreign exchange rules that promise to bring the naira closer to its “true value.”
Speaking to Bloomberg on Monday, Oyedele expressed optimism about the potential impact of these reforms, not only on the naira’s value but also on combating illicit currency trading.
“The Federal Government plans to introduce new foreign exchange rules, including a crackdown on illicit currency trading,” Oyedele stated, outlining the government’s strategy to tackle issues plaguing the currency market.
Oyedele emphasized that these reforms are expected to reduce the disparity between the official and unofficial exchange rates. The goal is to bridge the gap and reach what he referred to as a “fair price” for the naira before the end of 2023. According to Oyedele, the government envisions a “fair price” for the dollar in the range of “N650 to N750.”
One of the key components of the government’s plan is to establish transparent rules governing the official foreign exchange market. This move comes after a concerted effort to clear a backlog of dollar demand, estimated to be around $6.7 billion.
With these measures, the Federal Government aims to bring about a transformation in Nigeria’s foreign exchange landscape. The ultimate goal is to stabilize the naira and foster a more equitable exchange rate system, much to the relief of Nigerians who have long awaited a more favorable rate.
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