April 19, 2024

FX management can’t be successful without economic stability – LP’s Okonkwo tells CBN

FX management can’t be successful without economic stability – LP’s Okonkwo tells CBN

By Miftaudeen Raji

A Labour Party (LP) chieftain, Kenneth Okonkwo, has tackled the Central Bank of Nigeria (CBN) over the management of the foreign exchange market, saying that any forex management that does not translate to economic stability can’t be considered successful.

Okonkwo stated this in an interview with Channels Television on Friday.

He said, “I do not think the CBN understands what it is doing.

When you talk about the freefall of the naira, the worst case is when forex management affects manufacturers.

“The success of the forex management is in its ability to ensure stability and sustenance, not whether it is high or low. The greatest threat to the economy is uncertainty,” he said.

According to the former spokesman for the Obi-Datti Presidential Campaign, the duty of the CBN is to ensure macroeconomic sustainability.

Okonkwo said the All Progressives Congress (APC)-led government has foisted macroeconomic volatility on manufacturers in the face of forex instability, high diesel prices, and of late, electricity tariff hike.

Okonkwo said the government is punishing Nigerians on Band A for having more hours of power supply.

He said, “Some people living in rich neighbourhood are not rich.” He added that some Nigerians live in boys’ quarters in those neighbourhoods classified as Band A.

Okonkwo, however, said Nigerians are beginning to be aware that political power lies in their hands, adding that they are beginning to take decisions to take their destinies in their own hands.

According to the latest report by the National Bureau of Statistics (NBS), the inflation for March 2024 was largely driven by increase in food such as garri, millet, yam, bread coupled with energy and housing costs.

However, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Tuesday, said the Nigerian economy is moving in the right direction as policies of the new administration has started slowing down food inflation.