*The Nigerian House of Representatives in the National Assembly, Abuja, has urged the Central Bank of Nigeria to implement monetary policy adjustments to stabilise the country鈥檚 currency Naira from further slide against the US Dollar and other major foreign currencies with wide-ranging implications on inflation and cost of living in the economy

Isola Moses | 绿帽献妻

As part of the ongoing efforts at stabilising the Naira from its slide against the US Dollar and other major foreign currencies, the Nigerian House of Representatives in the National Assembly (NASS), Abuja, FCT, has urged the Central Bank of Nigeria (CBN) to implement monetary policy adjustments.

绿帽献妻 reports the House鈥檚 resolution followed the adoption of a motion moved by Hon. Ismaila Haruna Dabo at the plenary Tuesday, October 10, 2023.

The Lower Legislative (Green) Chamber of NASS stated that the CBN as the banking regulator in the country must address speculative activities in the Foreign Exchange (Forex) market and increase the withdrawal limit of the Naira to reduce the demand and pressure on Dollars and other foreign currencies.

In his motion, Hon. Dabo recalled that President Bola Ahmad Tinubu, June 2023, had announced changes to the country鈥檚 foreign exchange market through the CBN that foreign currencies can now be bought and sold at rates determined by the market and not by the apex bank.

Nigeria鈥檚 foreign exchange inflows have been lagging despite unification in June, with high demand for foreign currency and limited access to official markets as well as incentivising black market purchases, he argued.

The Federal lawmaker also lamented that the Naira has lost a greater percentage of its value against the Dollar, falling from N778.602/$ as of September 26, 2023, and nearly over N1000/$ at the parallel market, making it the first time Nigeria has liberalised the Forex mark.

Implications on inflation and cost of living

鈥淚nflation and the cost of living, depreciating naira makes imported goods more expensive, leading to higher inflation rates.

This increased cost of living disproportionately affects the most vulnerable citizens, as they struggle to afford basic necessities, which are now glaring across the country.鈥�

The House, therefore, urged the Federal Government to formulate policies and structural reforms to reduce corruption and promote economic diversification within the country鈥檚 economy.

It further urged the government to promote exportation and reduce importation by enhancing foreign investors鈥� confidence on its fiscal and monetary policies.

The House mandated its Committees on Banking Regulations and National Security and Intelligence to interface with the CBN to initiate compliance strategies.

It also mandated the Committee on Banking Regulation to investigate the use of US dollars and other foreign currencies as legal tender for domestic transactions in Nigeria.

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