Also, the association has lamented the rising import bill of the country and called on the federal government (FG) to deploy measures to tackle the challenge given its grave implication for the naira exchange rate.
The association stated this in its Quarterly Economic Review Report for the fourth quarter of 2021 (Q4’21), noting that the stoppage of dollar sales to BDCs by the CBN had triggered a period of reformation and realisation of the potential of its members.
Another potential for BDCs,
“These and more opportunities are open to the BDC sub sector to research and evolve operational strategies and techniques without recourse to funding from CBN,”
The association however called on the CBN to withdraw all restrictive and handcuffing controls which may hinder the ingenuity of the BDCs and thus their ability to explore the potentials highlighted above.
On the other hand
It stated: “Data from the
“By principle a depreciated currency makes exports of a country cheaper in the international market thereby increasing inflow of foreign exchange but unfortunately for
“The serious consequences of the continuous trade deficit is that it has also affected the country’s balance of payment account, thereby causing more pressure on the exchange rate.
“Notably, the official exchange rate at the Investors and Exporters (I&E) window depreciated by 6.03% to close the year at N435/
“Inflation-linked devaluations, which often seemingly lead to ever higher rates of inflation in the absence of sound domestic policies, are damaging.
Government should allow economic reasoning to outplay political tendencies which in the long run may lead the economy into catastrophic consequences.”
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