The House of Representatives on Tuesday mandated the Committee on Banking Regulation to investigate the use of the United States Dollar and other foreign currencies as legal tender for domestic transactions in Nigeria.
It also urged the Federal Government to formulate policies and structural reforms to reduce corruption and promote economic diversification within the nation’s economy. This, it said, was so that the foreign currencies can now be bought and sold at rates determined by the market and not by the CBN.It also noted that the President’s intention is to allow market forces to determine naira value, but the alarming exchange rate has impacted Nigeria’s economy, causing untold hardship due to increased demand for dollars and a dollar shortage.
“The House is also worried about the reduction in investment, as the value of the naira continues to lose value and depreciates against the dollar and other foreign currencies, foreign investors may be deterred from investing in Nigeria, fearing potential currency losses, which is capable of stunting economic growth and hindering the creation of new job opportunities for unemployed Nigerian youth.