President Bola Tinubu has hinted that there will be a thorough house cleaning in the Central Bank of Nigeria (CBN) to ensure Nigeria becomes a country with a single exchange rate.
“Thorough house cleaning is necessary, the Central Bank of Nigeria (CBN) must work towards a single exchange rate,” Tinubu said during his speech at his swearing on Monday in Abuja.
Nigeria currently runs multiple exchange rates, with the official and black markets jostling for foreign exchange buyers. The multiple exchange rates regime has often been criticised by the private sector.
Also, the International Monetary Fund (IMF) and the World Bank have spoken against the multiple exchange regime and advised the Nigerian government to merge them.
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His house cleaning comment was directed at the central bank, which is headed by Godwin Emefiele, who he previously accused of trying to derail his presidential ambition by initiating the Naira redesign policy.
Tinubu’s assurance to end the multiple exchange regime is in line with his campaign promise that his administration will collaborate with the monetary policy to strengthen the Naira in the foreign exchange market.
He projected that in the first term of his administration, the Naira exchange rate to Dollar will trade at N200, which is close to the level it was before Buhari became President.
“My administration will collaborate with the Central Bank to harmonize the fiscal and monetary policy to achieve immediate stabilization of the value of the naira against the US dollars and other currencies and in the short term, strengthen the naira by boosting the supply of foreign currency and moderating demand.
“The short-term goal is to achieve a naira/dollar rate of 300 naira/US$ and gradually achieve a less than 200 naira rate over the next four years,” Tinubu assured during his campaign.
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