Key Takeaways
- Professor Yemi Osibajo pointed out that the low exchange rate of the Nigerian Naira is entirely unnatural.
- The Nigerian Central Bank has refused to reduce their currency value, but is probing people that are responsible for the value drop.
- He advised the Central bank to consider the re-evaluation of the foreign exchange Management method.
- He advised the CBN to work towards showing the realities of the Market.
As a result, the Vice president made it known that he expected the Central Bank to work toward enabling the Exchange rate to show the realities of the Market.
As reported by the Cable, Professor Yemi Osibajo also enjoined the CBN to reevaluate the method employed by the foreign exchange management.
He stated that in his view, with the current unnatural exchange value, it is impossible to get new dollars into the system.
Everyone knows how much the Nation's reserve can grow, so he thinks there is a need for the country’s Central bank to Restrategize the Demand Management Method.
Osibajo further stressed that the re-evaluation should be carried out when the Central bank’s Management is ready to find a lasting solution.
Since early this year, the exchange rate of Naira to some world primary currencies like the USD and the Euro has been reducing.
Currently, the Dollar to Naira rate stands at 411 nairas per dollar. This exchange rate is about 40% lesser when compared to the parallel market rate, which currently stands at 570 nairas per US dollar.
Even with the disparity in the official exchange rate and the black market rate, the Central bank has refused to reduce Naira's value.
Instead, the financial institution is probing those suspected to be responsible for the currency depreciation.
Meanwhile, the Vice President advised the Central bank to desist from interfering in the Fiscal part of the Nation's economy.
He further advised that if there is a need for the institution to interfere in such a thing, they should do so after seeking consent and getting the needed cooperation from the Ministry of Industry.
Do you think following all this advice given by the Nigerian Second Citizen will help redeem Naira's value?
