Nigeria’s official exchange rate is “artificially low”.
Vice President Yemi Osinbajo made the remark in a speech at the Midterm Ministerial Performance Review Retreat which was held at the Banquet Hall, Presidential Villa, Abuja.
According to him, as for the exchange rate, I think we need to move our rates to be more reflective of the market as possible.
In his words, this, in my own respectful view, is the only way to improve supply. We can’t get new dollars into the system when the exchange rate is artificially low. And everyone knows by how much our reserves can grow.
“So I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink.
“All those are issues, I’m sure, that when the CBN Governor has time to address, he will be able to address in full.”
The Central Bank’s official rate is N410 to a dollar, but rates in the parallel market go as high as N570.