Osibanjo Recommends Further Devaluation of the Naira.

The Vice President of Nigeria Yemi Osinbajo, believes that Nigeria cannot bring new dollars into the economy while it’s exchange rate is “artificially low.”

Osinbajo made the remarks on Monday in Abuja, at the start of a two-day Mid-Term Ministerial Performance Review Retreat organized to examine progress toward the attainment of President Buhari’s nine core targets.

“As for the exchange rate, I think we need to move our rates to be as reflective of the market as feasible,” Osinbajo said, citing the artificially low exchange rate as a deterrent to investors bringing foreign cash into the nation. This, in my opinion, is the only way to increase supply.

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“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.”

“There must be synergy between the fiscal and the monetary authority. We must be able to deal with the synergy, we must handle the synergy between the monetary authority, the CBN, and the fiscal side.