Nigeria’s Vice-President, Prof. Yemi Osinbajo,has canvassed for further devaluation of the country’s currency, saying the apex bank, the Central Bank of Nigeria (CBN) should allow the naira to reflect the realities of the market.
While naira is being exchanged for N411 per dollar at the official side of the market, it is as high as N565 per dollars at the parallel market. To the lawyer turned politician, the CBN should hands off any control it might have on the naira from the official side so that the value of the currency would be determined by the prevailing market conditions.
Osinbajo was speaking at the midterm retreat of President Muhammadu Buhari’s second tenure, which was held at the State House, Aso Rock in Abuja on Monday.
Though the vice-president said his position was not the official stand of the government on naira, he believes the current exchange rate is artificially low, debarring investors from bringing foreign exchange into the country.
He said: “As for the exchange rate, I think we need to move our rates to be as reflective of the market as possible. This, in my own respective view, is the only way to improve supply.
“We can’t get new dollars into the system, where the exchange rate is artificially low. And everyone knows by how much our reserves can grow. I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink, and that is just my view.
“Anyway, all those are issues that when the CBN governor has time to address, he will be able to address in full.”