By Emma Ujah, Abuja Bureau Chief
Minister of Finance, Dr. Segun Aganga, has said creating a macro economic environment with low and stable prices, as well as competitive and stable real exchange rates held the key to halting capital flight from developing nations to developed economies of the world.
Addressing Governors of Central Banks of the D8 countries in Abuja, yesterday, he challenged them to work assiduously with a view to creating such environment in member countries to address the capital flight problem.
â€œIf our Central Banks deliver on the environment:Â low andÂ stable prices, competitive and stable real exchange rates in our countries, weÂ would reduce capital flight from our nations to the developed countries,â€ he said.
The minister added â€œas developing countries, we owe it to ourselves a duty to promote trade among ourselves in order to grow our economies at a faster rate than North-South trade would ordinarily afford us.â€
According to him, the total population of D8 countries is close to the population of India and China.Â But that the combined economic performance of the group does not compare with any of them, explaining:Â â€œD8 countries contribute onlyÂ about three per cent of world trade.â€
The minister also said the Federal Government was pursuing the Sovereign Wealth Fund in order to safeguard the nationâ€™s future and build a large pool of funds that could be invested in infrastructure development.
He saidÂ the proposed Fund would be divided into three: stabilizing fund, a savings portion and the third to be for the development of infrastructure meant to serve as a catalyst for local and international investors to invest in the nationâ€™s infrastructure development.
In his remarks, the Governor of the Central Bank of Nigeria, CBN, Mr. Sanusi Lamido Sanusi, said the forum examined ways to strengthening surveillance mechanisms, enhancing the domestic financial system and exchange of experiences among member groups.
The governor said â€œthe objectives are to provide the modalities and mechanisms of economic and financial cooperation among member countries.Â This interaction is envisaged to deepen and broaden the exchange of ideas among individuals countries for more effective policy implementation as well as, strengthen cooperation among the D8 nations.â€