Financial experts in Nigeria have been called upon to adopt currency management control mechanisms capable of reducing foreign exchange risk.

Making the call was the Chief Executive Officer/Principal Consultant Entrepreneurial Consulting LLC USA, Mr Kayode Abegunde while speaking with Tribune Online in a telephone conversation, on Sunday.

He said currency management and control uses currency hedging and absolute return strategies to minimise the risks of currency exposure and seeks to use currency factors as a source of diversified return.

Abegunde noted that finance experts should understand that currency management is the process by which global companies with significant cross-border transactions implement strategies to limit their exposure to foreign exchange fluctuations, in order to maximise the return on their foreign market operations.

He further stated that: “Financial policies, including the treatment of foreign exchange risks, are set centrally, the performances of operating groups will be influenced by exchange risk policies over whose effect they have little control.

“If financial decisions are left to the operating units, on the other hand, they are likely to overreact to exchange risks and thus sub-optimise from a corporate perspective.”

He concluded that there are three major solutions to Nigeria’s problems which include: good leadership, currency control and management and economic empowerment in both skilled and Unskilled settings, adding that the most important out of all is good leadership, saying once that is in place, others will be achievable.

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