The Senate, on Tuesday, handed for first studying a invoice to ban using foreign currency echange for funds and transactions inside Nigerian.
The proposed laws, aimed toward guaranteeing all funds, together with salaries and transactions, are performed in naira, seeks to eradicate discriminatory practices and strengthen confidence within the native forex.
This contains making it obligatory for exports to be paid for in naira.
The invoice was titled “A Invoice for an Act to Alter the Central Financial institution of Nigeria Act, 2007, No. 7, to Prohibit the Use of Overseas Currencies for Remuneration and for Different Associated Issues.”
It was sponsored by Senator Ned Nwoko, who’s the Chairman of the Senate Committee on Reparations and Repatriation.
In line with Senator Nwoko, the widespread use of foreign currency echange in Nigeria’s monetary system undermines the worth of the naira, perpetuating financial challenges.
He described using the greenback, Pound Sterling, and different foreign currency echange for home transactions as a colonial relic that continues to hinder Nigeria’s financial independence.
He mentioned the invoice seeks to “prohibit salaries, transactions, and funds in foreign currency echange, guaranteeing all staff, together with expatriates, are paid in naira.”
He additionally proposed that “crude oil and different exports to be bought solely in naira, compelling worldwide patrons to buy the forex and driving its demand and worth.”
He argues that the regulation will “place the Naira because the central forex for all monetary operations, reinforcing its dominance within the financial system.”
Nwoko added that the invoice will abolish casual forex markets that undermine the formal financial system and encourage unethical practices akin to round-tripping by banks.