WILL DROP IN USD RATES CHANGE HIGH PRICES IN THE MARKET?
The dollar issue seems to be nagging the minds of the general public who are wondering if the drop was real and would continue downward or it was just a matter of time before shooting up again. To maintain the down trend, the USD must remain in circulation for a long time to make it relevant otherwise its effect may not be felt if and when it takes only two to three months. Traders and main business circles are not rushing to buy the idea that the ongoing dollar auction with stabilize the market and help in reducing the prices of basic commodities which has remained high despite the dollar rate going down. One thing which Central Bank should make clear to the public is how they intend to maintain the downward trend of the rates. It should continue to go down to ensure the traders and businessmen who are capitalizing on the dollar market to purchase goods are put to permanent standby. There have been too much talks on how to control the high rate and how to jump-start the economy. This time there should be careful but well calculated move to ensure the dollar did not dictate the country’s economic status. It should be used for importation but preference should be given to the local currency. This is the trend worldwide. The economy cannot grow with reliance on foreign currency. Trading outlets should stop increasing commodities anyhow because the dependable foreign currency has shot-up its rates. Dollar should not be allowed to hold the economic neck but should be supportive to the growth. Indeed the economy is still in its toddler stage but this should not make the foreign currency dominate the local market by being wrongly used to hike prices of basic commodities. Activities in the local markets should be fully monitored by the authorities.