Renowned entrepreneur and founder of Stanbic IBTC and ANAP Foundation, Atedo, has expressed his reservations about the current administration’s eagerness to boost the value of the naira against foreign currencies, particularly the dollar.
Peterside believes that a hasty approach may not be the most effective strategy for restoring the currency’s strength.
While absolving the present government of blame for the depreciation of the Naira, Peterside emphasizes the need for a more measured approach.
He suggests that the central bank should focus on stabilizing the currency at a sustainable level for an extended period, gradually building up reserves.
Acknowledging the government’s efforts to manage the exchange rate problem inherited from previous administrations, Peterside proposes a period of stability around the range of N1,300 to N1,400.
He cautions against hastily appreciating the exchange rate, as it often benefits currency traders who exploit the situation for personal gain.
Peterside calls for a sustained equilibrium, maintaining the naira within the natural band of N1,300 to N1,400.
By doing so, he believes that confidence will be restored, allowing the government to build up reserves and create a more stable economic environment.
The recent rally of the naira, which briefly saw it declared as the best-performing currency globally, has been followed by a retreat to around 1,500 naira to a dollar in the black market.
This volatility underscores the need for a cautious and strategic approach to currency management.
In addition to his monetary policy recommendations, Peterside emphasizes the importance of the government’s commitment to responsible financial practices.
He advises against reckless spending that could undermine investor confidence and make the government appear irresponsible.
Peterside asserts that achieving reasonable results requires consistency in doing things right, rather than a sporadic approach of getting some things right while making avoidable mistakes.
While he commends the direction of Tinubu’s monetary policy, he highlights the need to address fiscal indiscipline at the highest levels of government.
In conclusion, Peterside’s insights shed light on the complexities of currency management and the importance of striking a balance between stability, gradual appreciation, and responsible fiscal practices.
Peterside suggests that a cautious and measured approach is crucial in navigating the challenges faced by the Nigerian economy.
