Dr. Anthony Aziegbemi, an economist, has described the CBN pumping of forex steadily in the last weeks in order to strengthen the Naira as an artificial solution and won’t have a long-term effect.
He said this yesterday in Abuja at a round-table discussion on the “Way out of recession” organised by Value Fronteira Limited.
The CBN, in the last two weeks, injected over $1.14B through the inter-bank market, to meet the demand of foreign currencies for travels, school fees, and medicals.
“Right now CBN is pumping so much Forex because it has the money. But once the money dries up, we are back to square one. Economics is a social science, thus contains laws that govern how economies should be run. If you don’t follow these laws and you do it artificially, like banning of the 41 items from getting foreign exchange, the economy won’t work as expected. You need to attack the foundation of the economy. You need to get the manufacturing industry up and moving. That is the only way we will have sustainable progress,’’ he said.