CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 8

We have more than 150 countries of the world that we can emulate effectively in term of forex management.Frankly speaking,if we don't know what to do,we can copy them hook,line and sinker what they are doing.It is unfortunate and surprises me it still remains major headache and crisis in this country given the fact forex market is the most important market in an economy.Speculative buying is certainly a contributive factor and we dont have to worry whether naira is overvalued or not and stuff like that and certainly mere symptom and not the cause or the problem.Nor should we be concerned people are taking position due to the fact that the rate is going up.In an environment tainted with macroeconomic price instability,there could be an element of that. The real challenge is the lack of deregulation of forex market.As it were over the last 30 years,there has a flurry of mismatch of policies by a politically indecisive government.There is no total liberalization of the economy and the government is torn to shreds between running a controlled economy or liberal one.And you don't open one side and close the other side and we seem to be committed to deregulated economy to no avail.When democracy came we opened up a lot of sectors,deregulation,liberalization and privatization and investors took positions.Unlike previous regimes,a lot of money flowed into the country like the famous telecommunications deregulation and recapitalization of banks and other financial