Naira should Reflect Market Realities, Osinbajo Tells CBN

In view of the falling exchange rate in the market, the Federal Government, has called on the Central Bank of Nigeria (CBN) to allow the currency to reflect market realities.

In his statement, the Vice President, Prof. Yemi Osinbajo disclosed that the exchange rate is artificially low, and it is deterring investors from bringing foreign exchange into the country. He also added that the current practice, which places the official rate at N410, is not a realistic reflection of the nation’s economic fortunes.

Speaking on Monday at the opening of a two-day Mid-term Ministerial Performance Review retreat, held at the Presidential Villa, Abuja, the Vice President stated that the dollar scarcity crisis can only be fixed when the market is made to reflect the real status of the economy. He further stated that the current demand strategy of the CBN has kept the rate artificially low

.“Oil price at one point fell even below production costs; about $10 a barrel and then finally settled at about $45 a barrel during the second quarter of 2020. The official rate of the naira was devalued from N305 to the dollar, to N380 to the dollar. This was in the third quarter of 2020″.

“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. So, I’m convinced that we need to rethink the demand management strategy currently being adopted by the CBN, and that is just my view,” he said.


Source: Guardian News