Wednesday, 15 February 2017

How Nigeria can deal with $4bn forex demand shortfall - KPMG


KPMG, a global firm providing audit, tax and advisory services, has said that for the country to achieve foreign exchange stability and solve the issue of unmet demand which stands at about $4 billion there was need for fiscal discipline and strong monetary policies.


Speaking at KPMG Shareholders Audit Committee Seminar for Nigeria Shareholders Solidarity Association, NSSA, Partner, Audit Services at KPMG, Mr Kabir Okunlola, advised the Federal Government to streamline the foreign exchange market to a single platform to enhance transparency and price stability.

Presently, Nigeria’s foreign exchange market runs on about five platforms with five different exchange rates.

He explained that the current fragmented nature of foreign exchange market will not help the country, noting, that “the sustainable solution is to have stable rate that everybody can get in terms of Foreign Exchange, because if we have different rates, it will give opportunity for fraud, where people get cheaper rate and sell at high rate in the market.”

Okunlola pointed out the need for government to reduce the extent of speculative demand for foreign exchange in the market.


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