Forex: CBN’s suspension of nine banks bad for economy – LCCI – Today

The Lagos Chamber of Commerce and Industry (LCCI) has faulted the Central Bank of Nigeria (CBN) for suspending nine banks from foreign exchange operations, saying the move is already fuelling uncertainties and impacting negatively on investors.

Director-General, LCCI, Muda Yusuf, in a statement issued in Lagos yesterday, said it was shocking that the nation’s economy had drained due to inconsistent policies in foreign exchange management by the apex bank.

He lamented that the situation had also led to poor inflow of foreign direct investment (FDI) into the country.

Yusuf said the apex bank should have managed the situation carefully bearing in mind the multiplier effect on the nation’s economy.

He said the major challenge facing the economy at this time was the inability to regain the confidence of investors, both local and foreign, adding the instability and inconsistency in foreign exchange management policy had also been complicating matters.

According to him, the economy has a major structural defect of being heavily import dependent that cannot be fixed in the short term.

He, therefore, pointed out that the shocks arising from the collapse of oil price and the corresponding depreciation in the naira exchange rate were inevitable.