Yemi Kale to CBN: Concentrate on boosting FX supply, not controlling demand

Yemi Kale, KPMG Nigeria partner and chief economist, has asked the Central Bank of Nigeria (CBN) to focus on boosting foreign exchange (FX) supply rather than regulating demand.

The economist made this known in a statement on his X page on Saturday.

While appearing before the senate joint committees on finance, banking and other financial institutions and national planning on Friday, Cardoso had said the country must moderate demand for forex.

However, responding to the CBN governor’s stance, Kale said the country can not curb demand in the near term without expanding the foreign exchange (FX) gap and worsening confidence.

“We can’t really control demand in the near term without once again widening the fx gap and worsening confidence,” he said.

“Anytime we try to forcefully control anything it often leads to an increase in its price.”

Cardoso, on February 9, 2034, had said the FX market received a boost of over $1 billion in liquidity within a “few days”.

“Indeed, we have already begun to see positive results with significant interest from foreign portfolio investors which was a concern that has already begun to supply the much-needed foreign exchange to the economy,” Cardoso said.

“For example, the upward trend of the last few days. We have had over $1 billion that have come into the market. And this, quite frankly, is the answer to the question.”

Cardoso also said Nigerians must reduce dollar demand for both personal and business purposes.