Nigerian stock brokers calls on President-elect to unify exchange rate

As Nigeria prepares for a new president-elect to take office, the country's stockbrokers have called on the incoming leader to take swift action to unify the exchange rate in the country.

The call comes amidst a period of economic turbulence in Nigeria, with the country's currency, the naira, experiencing significant fluctuations in value against other major currencies. This has had a significant impact on Nigeria's economy, with many businesses struggling to plan and invest effectively in such an uncertain economic climate.

According to the Nigerian Stock Exchange, the current exchange rate system has been a major factor in the country's economic difficulties. The current system, which sees the naira pegged to the US dollar, has resulted in a shortage of foreign currency in Nigeria, making it difficult for businesses to access the finance they need to import goods and invest in their operations.

Stockbrokers are now calling on the new president-elect to take swift action to address this issue by unifying the exchange rate in the country. This would involve scrapping the current system, which has been in place since 2015, and introducing a new system which would allow the naira to float freely against other currencies.

Benefits of unifying exchange rate

•This move, according to stockbrokers, would have a number of significant benefits for the Nigerian economy. Firstly, it would help to increase the supply of foreign currency in the country, making it easier for businesses to access the finance they need to import goods and invest in their operations. This would, in turn, help to stimulate economic growth and create new jobs.

•Secondly, a unified exchange rate would help to restore confidence in the Nigerian economy. Currently, the uncertainty surrounding the exchange rate has resulted in many investors and businesses being hesitant to invest in Nigeria. By unifying the exchange rate, the new president-elect would send a clear signal to investors that Nigeria is open for business and is committed to creating a stable and predictable economic environment.

•Thirdly, a unified exchange rate would help to reduce corruption in Nigeria. Under the current system, there are significant incentives for individuals and businesses to engage in corrupt practices in order to obtain access to foreign currency at a more favorable rate. By introducing a unified exchange rate, the new president-elect would help to reduce these incentives and create a more level playing field for businesses in Nigeria.

Of course, there are risks associated with any major economic reform, and unifying the exchange rate in Nigeria is no exception. There is a risk that a sudden devaluation of the naira could result in inflation and cause further economic difficulties for the country. However, by carefully managing the transition to a new system, the new president-elect could mitigate these risks and ensure that the benefits of a unified exchange rate are maximized.

In conclusion, the call by Nigerian stockbrokers for the new president-elect to unify the exchange rate in the country is a timely and important one. The current system has been a major factor in Nigeria's economic difficulties, and a unified exchange rate would have a number of significant benefits for the country's economy. By increasing the supply of foreign currency, restoring confidence in the economy, and reducing corruption, a unified exchange rate would help to stimulate economic growth, create new jobs, and create a more level playing field for businesses in Nigeria.