HOW WE CAN HEDGE THE FREE FALL OF THE NAIRA
Managing the current monetary challenge will not be an easy one. I foresee that there is now a need for a cocktail of combined solution, just like you need a cocktail of drugs to treat an acute disease like AIDS, as the actions or inactions of government and the monetary authorities has degraded the economy so badly. At the current rate of free fall, only a total collapse is coming. The Naira exchange at 320 tp1$ at the beginning of the month and has skyrocketed to 391 to 1$ at the time of writing. Something is wrong in the monetary regime. Me thinks the following; · Part of the problem is that CBN is trying to sell, manage and control a commodity it does not have control over. It is dancing in the wind. CBN does not produce dollars, it produces Naira. It should therefore focus on the Naira and leave the dollars alone. · There MUST be a single FOREX market for Nigeria. No ...