CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 10.

the motif for documentation is driven by the need if the procurement is meant for manufacturing or trade.With this information,government accordingly directs policy to take into consideration this motif for productive activities and not speculation to encourage that particular sectors of the economy.This is the only use of documentation in line with best practices and not used for speculative purposes nor to control its use. I think the problem started in early 1999 especially in 2001when the apex bank did the so called restructuring termed Project Eagles and shortly after that it returned to retail banking focusing on forex auction and ever since the value of naira plummeted.But if government frees the forex market and we have one rate differential vanishes. The fear of capital flight as nurtured by those who support forex control does not arise in this context given that we have witnessed a couple of investment over time since we return to democracy.The return in the financial system especially the stock exchange in the country inspite of COVID19 outbreak still the best worldwide.I do not think there should be incentive for Nigerians to move their money out if the country is politically stable especially when you provide security for such money to be invested overseas at 3percent? Certainly,when government frees the forex market from excessive control the investors confidence will increase to mean that they have freedom to move in and out their money