The Nigerian naira should not be devalued further, President Muhammadu Buhari said on Wednesday, despite the Central Bank of Nigeria’s growing struggles to keep the naira at current levels.
Despite CBN’s uphill struggle to keep the naira from falling, Buhari says naira must not be devalued.
“I don’t think it is healthy for us to have the naira devalued further. That’s why we are getting the central bank to make modifications in terms of making foreign exchange available to essential services, industries, spare parts, essential raw materials and so on – but things like toothpicks and rice, Nigeria can produce enough of those.”
President Buhari said this in an interview with France 24.
The naira had fallen to as low as 242 per dollar on the parallel market in July, versus the official rate of 197. It has lost around 15 per cent against the dollar over the past year with the official devaluation in November and a de facto one in February.
In June, the CBN restricted access to foreign exchange for the import of 41 items ranging from rice and toothpicks to steel products and glass.
The stringent restrictions have not gone down well with investors, who have called for a relaxation.
But Buhari’s position conflict with those of some local and foreign economists and analysts, who believe the naira must be devalued.
