Economic stakeholders have identified productivity as the solution to the current foreign exchange crisis facing the country.
They expressed this view during a breakout session tagged ‘Monetary policy management in challenging times’ at the Nigerian Economic Summit in Abuja.
In a statement, the Group Managing Director, Parthian Partners, Oluseye Olusoga, said the solution to Nigeria’s forex problem was the creation of synergy between the monetary and fiscal policies that would make the nation more productive.
He said pressure on Nigeria’s forex was caused by the mob up of dollars by foreign investors who wanted to repatriate their funds after investing in securities in the country’s capital market, causing distortions in the forex market in the process.
According to him, “When foreign money comes into the country and it is not increasing production, it is not different from rent-seeking.
“The truth is that if we do not produce, we will be poor.
‘‘Once we can produce and have value-added services and exports, then naturally our reserves will increase. As long as we do not produce, the turbulence will continue.’’
Other panelists at the session said the country might only be able to tackle soaring inflation.
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