Godwin Emefiele, CBN Governor
Some financial experts on Wednesday in Lagos expressed mixed reactions on JP Morgan’s decision to phase out Nigeria from its Government Bond Index for Emerging Markets (GBI-EM) by the end of September.
They expressed their views in separate interviews with the News Agency of Nigeria (NAN) on the JP Morgan GBI-EM indices, which are comprehensive emerging market debt benchmarks that track local currency bonds issued by governments.
According to the rating agency, Nigeria has failed its liquidity and transparency tests and has not offered a fully functional two-way Foreign Exchange (FX) market.
The Director-General of the Lagos Chambers of Commerce and Industry (LCCI), Mr Muda Yusuf said that the naira exchange rate should be allowed to reflect the fundamentals of the FX market.
Yusuf said that a rate which market fundamentals could not support would not be sustainable.
He suggested the adoption of a market approach with a periodic intervention by the CBN as the capacity permits.
”The CBN should allow the FX market to function without compromising its oversight functions to ensure that the market does not become a platform for money laundering.
”The CBN should be compelled to engage with relevant economic ministries in order to bring about coherence in the management of the Nigerian economy.
”These other key ministries and agencies include the Nigeria Customs Service, Federal Ministry of Finance, National Planning Commission and the Federal Ministry of Industry, Trade & Investment.
”There has to be a proper coordination between the key ministries and the CBN to give a credible direction to the economy and ensure a better quality of economic management.”
The LCCI boss urged the CBN to put in place policies that would encourage inflow of forex without necessarily creating a tolerance for money laundering.
”This we believe can only be done through intelligence. The fight against money laundering can be more effectively …Read More
Source:: PM Newspaper