Reps to probe use of dollar, other currencies as legal tender… 

The use of the US dollar and other foreign currencies as legal tender for domestic transactions in Nigeria is under probe, according to a Tuesday order from the House of Representatives sent to the Committee on Banking Regulation.

The House of Representatives also urged the Central Bank of Nigeria to address Naira’s depreciating value in relation to the dollar and other currencies.

The House requested the CBN to alter monetary policy to stabilise the naira, address speculative activity on the foreign exchange market, and raise the naira’s withdrawal cap to lessen pressure on dollars and other foreign currencies.

It also asked the Federal Government to develop structural changes and measures to fight corruption and advance the nation’s economy’s diversification.

The House additionally asked the Federal Government to increase foreign investors’ confidence in its fiscal and monetary policies to stimulate exporting and decrease importing.

It instructed the National Security and Intelligence Committee and the Committee on Banking Regulations to communicate with the Nigerian Central Bank to launch compliance efforts.

These resolutions were passed when the Hon. Ismaila Dabo’s motion was approved.

You may recall that President Bola Tinubu promised reforms to the nation’s foreign exchange market in June 2023, according to the House of Representatives.

This, it said, was done so that market rates, rather than those set by the CBN, would henceforth be used to buy and sell foreign currencies.

It also mentioned that the President intended to let market forces determine the value of the naira, but that the frightening exchange rate has had an impact on Nigeria’s economy and caused great suffering owing to a rise in demand for dollars and a lack of dollars.