The chief executive officer of Financial Derivatives Company, Bismarck Rewane, has said that the Central Bank of Nigeria’s policy on the currency swap would cost Nigeria a Gross Domestic Product loss of $18 million monthly.
According to him, Nigeria may experience a total man hour loss of five days per month owing to the disruption and adverse impact of the redesign policy of the CBN.
According to a report by The Cable, the CEO spoke during a presentation at Lagos Business School.
In his words, “Total man-hours loss in a month will be 120 hours and total GDP loss in a month will be $18 million,”
Rewane touched on the impact of the decline in cash circulation
He said, “Trade is settled mainly in cash and POS, although 70 per cent of trading transactions are settled by cash.
“Therefore, velocity of circulation in the trading sector is approximately four times more than the formal sector.
“A decline in the velocity of circulation could reduce output in the trading sector. Hence its contribution to the GDP will fall.”
