The CPPE explains to Tinubu how to curb the volatility of the foreign exchange market

Amid the volatility of the foreign exchange market, the Center for the Promotion of Private Enterprise offered solutions to the administration of President Bola Ahmed Tinubu.

CPPE Director Dr. Muda Yusuf revealed this on Sunday, noting that the government should accelerate a sustainable response framework to moderate the current situation.

DAILY POST recalls that the foreign market has been unstable since the introduction of operational reforms by the Central Bank of Nigeria on June 14.

Reacting to the situation, Yusuf pointed out that volatility is naturally troubling.

He said monetary intervention was necessary to avoid a possible erosion of investor confidence.

"Forex market volatility is understandably troubling. But that's not unexpected given the long-running distortions in the forex market. Correcting entrenched distortions would take time.

“But in the meantime, the monetary authorities should develop a sustainable intervention framework to ensure the moderation of the current volatility in the foreign exchange market. We recognize the limitations of currency supply, but the system must be managed so as not to undermine investor confidence. The erosion of confidence triggers speculation and influences expectations, triggering diverse responses among economic actors,” he said.

Yusuf urged CBN to reduce the money supply and take steps to curb further expansion.

He added that CBN should protect the foreign exchange market from speculative attacks and illicit capital outflows.