economy and use it for import; they put it in an account unutilised and use it for collateral for naira transactions which again is one of those things that have become prevalent in Nigeria and helping to lower the value of the naira.” Idahosa said.
OPS members
He explained that to take a naira loan facility you should either make a naira deposit or assets that are available to the bank.
He said, “They are two different currencies because normally if you want to take a naira loan facility you should either make a naira deposit or assets that are available to the bank. So certainly the CBN is doing this as part of increasing the supply of foreign exchange into the economy.”
He added, “So the foreign currency is not doing anything, it is not helping the economy so that was why the CBN is doing that. So it is a welcome development because we have always said that the CBN should look at how to supply more foreign currency into the economy.”
The LCCI president advised that if anyone in possession of dollars doesn’t need them for anything it should be sold off.
“If you have dollars and you don’t need them, you sell them or you keep them in a sales account but you don’t now turn around to take a naira loan to do transactions.”
The Head, of Corporate Affairs of the Small and Medium Enterprises Development Agency, Mr. Moshood Lawal, said, “For us at SMEDAN, this is a very welcomed development as it reduces the bottlenecks encountered by Micro and Small and Medium Enterprises in accessing finance
“We believe that no business can thrive in an economy that is characterised as volatile uncertain complex and ambiguous and that is what the foreign currency-dominated collateral aggravates in the Nigerian economy. So it is a decision that is welcome within the MSME ecosystem.”
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