Simple Logic to Strengthen Naira

Dollar has become so mighty in our country to the extent that the CBN no longer have control over the exchange rate. Businesses are closing down and price of products and services are skyrocketing daily. Life is so hard to live that many Nigerians prefer to die to living it. Bad news everyday on how people commit suicide just because they can’t get through the hard life.

I will be straight and brief with the explanation and illustration. Naira will keep going down the drain unless the banking system of Nigeria is re-structured to value naira instead of almighty dollar. Naira must be giving more attention instead of Dollar. How is this possible? I will explain below in a clear and simple terms that will make even a primary school student understand my points.

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Firstly, Before anything can be done to put a stop on naira devaluation, Nigeria banks must with immediate effect cancel what is consider as “Domiciliary Account”. People should not be allowed to keep foreign currencies in any Nigeria Bank Account. There should be no different between naira and dollar account. The naira account should be able to receive payment from abroad in different currencies which will be deposited into the recipient account in the value of our local currency “Naira”.

Same will also apply when someone is making payment abroad; the value of the money in naira will be deducted from his/her bank account and forwarded to the receiver abroad in their currency. No single bank account should be giving the opportunity to keep any other currencies except naira. With this structure in place within our local banks, there will be more demands of naira which will drastically help reduces the demand for dollar.

Check the Simple Illustration below for Clarity:

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