The Chartered Institute of Treasury Management (CITM) has urged the National Assembly to enact a law that would regulate the acquisition and holding of foreign currency, particularly dollars, to strengthen the naira.
Registrar of the institute, Olumide Adedoyin urged the Federal Government to come alive to its responsibility of protecting the national currency by enacting proper legislation to protect the sanctity of the naira.
Adedoyin said there was a need for political will to take fundamental decisions on the process of regulating the acquisition and holding of foreign currency.
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He said: “There are multiple economic indicators ranging from inflation rates, interest rates, economic growth, trade balance, political will and stability, and market sentiments as determinants for the real value of the naira.
According to him, the challenges currently in the financial system are that if the monetary authorities decided to make available the sum of a trillion dollars into the economy, it would be mopped up within 24 hours.
He said this was so because the majority of the affluent Nigerians have vaults within their households where currency is stored.
According to him, it is either for speculative motives or for illicit trading and value enhancement of private wealth outside the banking system.