The exchange rate is artificially low — Osinbajo asks CBN to make the exchange rate reflective of the market

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The exchange rate is artificially low ? Osinbajo asks CBN to make the exchange rate reflective of the market

Vice President Yemi Osinbajo has asked the Central Bank of Nigeria to make the exchange rate reflective of the market as it is artificially low.

 

In his speech at the midterm retreat of President Muhammadu Buhari’s second tenure, the vice-president said the artificial low exchange rate is deterring investors from bringing foreign exchange into the country.

 

Osinbajo 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.”

 

While the dollar exchanges…



Source: Linda Ikeji