Presidency, CBN and devaluation of the Naira - Sabi Tips


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Presidency, CBN and devaluation of the Naira

Yesterday,Vice President, Yemi Osinbajo reaffirmed the position of the Federal
Government that the country’s currency would not be devalued in spite of pressures to act
otherwise. But the former Central Bank of Nigeria (CBN) Governor, Joseph Sanusi, replied that delaying the devaluation was akin to postponing the evil day.

The positions were taken at a town hall meeting that the Vice President held with his co-tenants
in the Victoria Garden City (VGC) on the Lekki- Epe axis of Lagos. At the widely attended and thought provoking event, Mr. Osinbajo insisted that devaluation was not on the table, adding “that is the position of government’’.

According to him, the CBN will operate in line with the speech delivered by President Muhammadu Buhari, after he was elected to come up with flexible exchange rate to be supported by strong monetary policies. He said that the foreign exchange policy of government was to stop unnecessary    
consumption of imported goods and promote local manufacturing.

However, former CBN Governor, Mr. Sanusi, a VGC resident, advised the government to either devalue the currency or stop the confusion between the official and parallel market exchange rates. He said allowing an official rate at N97 per dollar while the parallel market sold for over N300 was “distractive’’. “Naira is already devalued and government not accepting it is postponing the evil day,’’ Mr. Sanusi said.

Mr. Osinbajo had also said government met a falling revenue profile in May 2015, which was down by about 70 per cent compared to the same period of the preceding year.

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