In response to the recent surge in Customs exchange duty orchestrated by the Central Bank of Nigeria (CBN), the Sea Empowerment Research Center (SEREC) has called for a reassessment of the CBN’s approach.
Advocating for a fundamental shift, SEREC proposes the adoption of the Chinese Yuan as an alternative foreign exchange transaction currency.
The center in a statement made available to our correspondent on Wednesday by its head researcher, Dr. Eugene Nweke said that the adoption of the Chinese Yuan will alleviate pressure on the USD regime and stimulate positive economic changes amidst prevailing uncertainties.
SEREC further stated that the proposal follows growing concerns among traders regarding the frequent adjustments to the exchange rate and their implications for international trade dynamics and economic stability.
The center explained that stakeholders, including representatives from international market associations and prominent shippers, have voiced apprehensions over the impact of these relentless increments.
SEREC stated that many of the players lamented the relentless increments, citing the erosion of investment value and the creation of an atmosphere of uncertainty in the international trading arena.
Drawing on its research and observations, the centre highlighted the destabilizing effects of fluctuating exchange rates on the economy, noting a departure from international standards of transparency and predictability in customs duty administration.
SEREC stated that of particular concern was the covert nature of these adjustments, often implemented during midnight hours without prior notification to traders, further eroding trust in the regulatory framework.
The center further noted that a survey that was carried out revealed a prevailing lack of confidence among traders regarding the motives behind these incremental changes. While some interpreted it as a revenue acceleration tactic, others viewed it as an experiment by the CBN, questioning the apex bank’s ability to effectively navigate economic challenges.
The center further lamented the purported transformation of the Nigeria Customs Service portal into an alternate stock exchange market platform, stating that this has added to the confusion, raising doubts about the CBN’s strategies and intentions.
SEREC consequently called for a reassessment of the CBN’s approach, proposing alternative policies such as adopting the Chinese Yuan as an alternate foreign exchange transaction currency.
The center said these measures, could alleviate pressure on the USD regime and stimulate positive economic changes in the face of prevailing uncertainties.
