How to strengthen naira, by Nigeria's Sanusi

Speaking at the opening of the annual CBN seminar for finance correspondents and editors in Lokoja, yesterday he said that Nigeria must work for a stronger naira, export more and be less import dependent, All Africa news reported. "Let me stress that if we want a strong naira we must work for it and earn it through increased productivity by exporting more and importing less.

"When each stakeholder does its own bit, then achieving a strong naira and a low interest rate, structure will be feasible," he said. The CBN boss dismissed the impression that a stronger naira meant a stronger or successful economy. His words: "Let me further note that we should discard the perception that a strong currency is necessarily synonymous with a successful economic performance, Japan, Italy and all the South-East Asian countries success stories are examples of this caveat."

"If we continue to push for a stronger economy, we would endanger local production," the Governor continued. According to him the apex bank was making every necessary effort to arrive at an acceptable position in the balancing act of interest and exchange rates in relations to other macro-economic variables. He admitted that the high lending rates in the country was an impediment to borrowing towards sectors' growth and urged operators to place the interests of the real sectors at the centre of their credit facility administration.

Earlier, Deputy Director, Research, Mr. C.M. Anyanwu suggested a better co-operation of the nation's monetary and fiscal polices as a crucial factor towards attaining sustainable growth.

Mr. Anyanwu in the paper presented on his behalf by Assistant Director, Research, Mr. Banji Adebusuyi, also called for a greater focus on export as a veritable means of growing the economy.