Renowned economic expert Bismark Rewane expressed optimism about the future of Nigeria's currency, the naira.
Despite its recent depreciation against major foreign currencies, Rewane believes that the right policies and effective resource management could lead to sustained appreciation of the naira.
According to the latest data from the FMDQ Securities Exchange, the naira has shown signs of recovery in both the parallel and official markets, closing at 1,410/dollar and N1,475, respectively.
Rewane attributes this potential for sustained appreciation to factors such as the Central Bank of Nigeria's decision to increase interest rates, which has led to a greater inclination towards saving over consumption among Nigerians.
"The truth is that it is sustainable as long as you do a number of things," Rewane stated, emphasizing the importance of enhanced savings and reduced consumption in bolstering the naira's value.
However, the economic expert criticized the government's handling of economic resources, citing issues such as wastage, leakages, and mismanagement within the government apparatus as significant challenges to the country's financial stability.
Despite measures such as travel bans aimed at reducing government expenditure, these issues persist and pose a threat to the potential appreciation of the naira.
Rewane's comments come at a critical time when the naira has experienced sharp falls against major currencies, stirring widespread concern among investors, business owners, and the general populace.
As Nigeria navigates its way through these economic challenges, the implementation of effective policies and the efficient management of resources will be crucial in determining the future of the country's currency.
