The CEO of Financial Derivatives, Bismarck Rewane, has called on the Central Bank of Nigeria (CBN), to resist price fixing and allow the Naira depreciate to “maybe 340, maybe 350″.
Rewane stated this while speaking to Channels Television on Monday.
“The central bank can intervene with whatever the resources they have, but cannot begin to fix prices, price control never works,” Rewane said.
Speaking on the international monetary fund, IMF warning to Nigeria, after the conclusion of the Article IV consultation process, he added:
“It is important that the central bank now allows the 305 to depreciate more to where the market is, maybe 340, maybe 350 and then allow everybody…what we call a real effective exchange rate.”
Rewane also encouraged the President Buhari administration, to keep engaging the Niger Delta, to keep oil production levels close to 2 million barrels per day.
“We must engage the Niger Delta to ensure that prices remain constant at almost two million barrels per day. Two, we have to engage OPEC to ensure that the price stability is maintained,” Rewane said.
“But more importantly is that we cannot be a stop, go economy. We need to take all the steps that are required in terms of appointing boards, making the policies, making sure the budget is passed, making sure the spending…mobilising the contractors, especially power and transport, so that infrastructure spending, which unlocks resources will stimulate the economy.
“Most importantly, keep the oil production up, and price, you have no control over pricing.”
Culled from: dailypost