Monday, April 3, 2017

CBN Forcing Naira Down - Ezekwesili Reacts To New Forex Policy

Former Vice President of the World Bank, Mrs. Oby Ezekwesili has described Central Bank of Nigeria governor, Godwin Emefiele's foreign exchange policy as a medieval approach.

This is coming as the Central ban of Nigeria slashed the rate at which it was selling dollars to Bureau De Change (BDC) operators nationwide.

The Apex bank also put their selling rate at N360 about 10.8 per cent slash to the dollar.



Reacting on Monday, the former Minister of Education on her official twitter handle said Emefiele stumbled on a new trick to force down rates. “so he's going to test it to destruction until it stops working “.

She said: “Every Currency that goes up can come down through SOUND monetary policy. But, every Currency that comes down by FORCE will go up.

“The worst FX Policy is when monetary authorities play to the gallery of their Political authority to make Nominal Value THE ISSUE.

“Rather than a sound focus on the REAL Exchange Rate of the Naira, there is unhealthy and unwholesome obsession with its Nominal Rate”.

Meanwhile, the International Monetary Fund, IMF, last Thursday advised the Nigerian government on ways to ease its economy out of recession.

The IMF urged Nigeria to lift its remaining foreign exchange restrictions and scrap its system of multiple exchange rates and boost investor confidence and help the economy on its way to recovery.

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