CBN describes calls to float Naira as laughable

• vows to sanction banks

By Odunewu Segun

The Central Bank of Nigeria (CBN) at the weekend rejected calls by the International Monetary Fund and other international financial institutions that Nigeria should float its currency, Naira, describe the call as laughable.

Speaking to journalists on the sidelines of the World Bank/IMF meetings, CBN spokesman, Isaac Okoroafor said Nigeria’s market is extensively liberalized, and that the call to float the naira was laughable.

He said if Nigeria yielded to the call and floats the naira as being advised, Nigeria’s case will be worse than that of Egypt which already has an inflation rate of almost 31 per cent compared to Nigeria’s 17.26 per cent

“Yes, we would go all out to practice economic theory the way they say you should allow your currency to float, but of course, you should also know that no country floats its currency; just leaving it to the dictates of the market. Our economies has its own peculiarities, and we cannot kill our people in the name of floating the naira.”

Meanwhile, the apex bank has reiterated its resolve to ensure the drivers of the economy — small and medium enterprises (SMEs) have access to foreign exchange.

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Okoroafor said the CBN would sanction any bank that denies Small and Medium Enterprises (SMEs) access to foreign exchange (Forex) from the newly instituted SMEs Forex Window.

The window which opened about two weeks ago is designed to help SMEs import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.

He said appropriate sanctions are spelt out by the CBN Act and the Banks and Other Financial Institutions Act (BOFIA), adding that staff and even chief executives of banks could be punished where necessary.

The CBN spokesman said the apex bank has already received series of complaints from bank customers, especially those that operate in the SMEs segment of the market that banks are frustrating their efforts at getting forex.

He appealed to bank customers and the SMEs to “please give us concrete evidence against these banks so that we can hold them responsible by way of sanctions.”

He added: “Get a photocopy of your Form Q, Form X, Form A or Form M. Give us the name of the bank, branch and send to us and we will deal with them as example to others.