The CBN had on Wednesday July 12 issued a circular to direct unified all exchange rates within the economy into the Investors and Exporters (I&E) window abolishing all exchange rate segmentation with immediate effect.
The new directive to the Commercial banks to give Naira when foreign currencies are sent into the country would water corruption and further enrich the wealthy. When the policy was made to give remittance in the currency that was sent, Nigerians in diaspora were happy. They seized the opportunity firmly, but bankers abused it. Unconnected receivers and the less privileged were told that foreign currency sent were not available. Bankers encouraged their customers to use their own Mallams who would give Naira using low exchange rate and one wonders, which currency were they going to give to the Mallam. The response is that the currency dealer has domiciliary account and the rest is not customers’ business. What eventually happened is that the tellers and the Mallam would share the difference between the low rate given to the customers and the going rate. Sometimes, receivers are compelled to use the remitted amount to open a domiciliary account just to be told at the point of withdrawal that there is no foreign currency or only $1 is available knowing full well that no one would exchange $1 at the going rate of the dollar to Naira.
This new policy is bad for the following reasons. First, most Nigerians are devilishly and wickedly dishonest by nature. Once the policy is announced, customers would mostly not be given foreign currency any longer and the bank officials would trade with the foreign currencies while they give Naira to their customers at a lower rate thus abusing the Harmonization rates policy. Currency dealers would always change foreign currencies at higher rates to keep themselves in business because buyers of foreign currencies are not able to buy foreign currencies from Commercial banks given the rigorous process. To buy foreign currencies in the bank, you must register and bid and to buy dollar using personal travelling allowance, is not simplified. If you lose the bid, that is it. So, it is just like denouncing a military coup without addressing the fundamental triggers of Military coups which makes changing of government arduous through ballots. These fundamental causes of coups are not limited to inhuman, unpatriotic behaviors, shameless destruction of African countries economy and corrupt mindset of African politicians who make life unbearable for all and sundry, and who devalue the worth of Africans. In essence, additional work needs to be done to make the Harmonization rate work. If not, we would be making the rich richer and the poor poorer.
Secondly, Nigerians need to know that the policy to pay foreign currencies was approved by the National Assembly. This policy cannot be overridden by the sole policy of the CBN. In as much as this policy of the National Assembly is still in effect, Nigerians have a choice. Consequently, the patronizing press release issued by Abike Dabiri does not help the government it essays to serve. That press release deceives. It is also unfortunate that the policy of the National Assembly does not provide for enforcement body that customers can lodge complaints to.
Thirdly, if I need foreign currencies to buy goods from another country and someone is kind enough to send me dollars and the bank gives me Naira, it would now cost me more Naira to buy the needed dollar back. The Administration of President Tinubu needs to be extremely sensitive to policy that would impoverish our citizens. To comfortable Nigerians making their money through corruption and saying that Nigerians are impatient, they need to think very deeply and be kind to their fellow citizens, and not be selfish. A patient in the hospital who is under suffocation and watching his doctors partying, buying Mercedes Benz, and taking care of the riches alone would have to cry aloud to the top mountain. All the sycophants in governments must stop patronizing rulers in power deceiving them for pecuniary advantage.
Ogbeni Lanre Banjo’, Former gubernatorial candidate, Ogun State.
Harmonization of Exchange Rates
The CBN had on Wednesday July 12 issued a circular to direct unified all exchange rates within the economy into the Investors and Exporters (I&E) window abolishing all exchange rate segmentation with immediate effect.
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