Nigeria's Vice President says that the current Naira change course is artificially low-economy
Nigeria's Vice President says that the current Naira change course is artificially low-economy
The Nigerian Vice President Yemi Osinbajo recently warned that the country's official Naira change course of N411 was artificially low for every dollar. This exchange rate, according to Osinbajo, scares the foreign exchange into the country.
The Naira change course must reflect the market emphasis
Consequently, Vice President Osinbajo says that he wanted the central bank of Nigeria (CBN) to "reflect the realities of the market". As a according to the Cable-Details would like to Osinbajo also that the CBN rethinks its foreign exchange management strategy. He explained:
We cannot bring new dollars into the system in which the exchange rate is artificially low. And everyone knows how much our reserves can grow. I am convinced that the Demand management strategy currently pursued by the CBN has to be covered, and that is just my view.
Osinbajo, however, suggested that such a reassessment only be made if the CBN governor has time to deal with this problem.
depreciation in Naira
Since the first half of 2020, the Naira has continuously devalued to important currencies such as the US dollar and the British pound. At the time of writing, the official exchange rate from Naira to USD is just over $ 411 for every dollar. This exchange rate is almost 40% lower than the parallel market course of 570 Naira for every dollar.
Despite this discrepancy between the official course and the black market course for the Naira, the CBN has so far refused to devalue the currency. Instead, the central bank has followed individuals and companies who are accused of promoting Naira.
In the meantime, Osinbajo warned the CBN against interfering in the fiscal part of the economy. However, if such an intervention is necessary, the CBN only works if it has "the full cooperation and approval of the Ministry of Industry", Osinbajo.
demandedDo you agree to the Vice President's Naira feelings? Tell us your opinion in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons