…..,laments gap between official,paralell markets
Nigeria’s Vice president and leader of the Government Economic Team, Yemi Osinbajo has expressed concern over the widening gap between the naira and the US Dollar blaming the situation on the current exchange regime introduced by the Central Bank of Nigeria ( CBN) in 2017.
Osinbajo made this known while addressing participant’s of the Nigerian Economic Summit Group.Summit on Tuesday.
Osinbajo recalled that while several efforts made in the past were not perfect, the rules were clear and the gap between the official and parallel markets was not so wide
CBN ‘s introduction of Nigerian Autonomous Foreign Exchange Rate Fixing ( NAFEX) to manage Forex crisis has rather than check the depreciation of the Naira worsens it as the local currency currently depreciates to over N800 to the dollar in the parallel market and over 440 at the official window.
“Our exchange rate regime remains of concern,” Mr Osinbajo said at the Nigerian Economic Summit in Abuja on Tuesday.
“The discussion that we must have, shun of sentiments, is how best to manage the situation by finding a mechanism for increasing supply and moderating demand which will be transparent and will boost confidence.
“I am sure most can recall several efforts have been made in the past such as the Interbank Foreign Exchange Market, Retail Dutch Auction System, Wholesale Dutch Auction System. etc.
“While they may not have been perfect, the rules were clear and the gap between the official and parallel markets was not so wide,” Mr Osinbajo, who leads the government’s economic team, said.
The Vice President said in addition to the monetary measures being taken by the Central Bank of Nigeria, Nigeria needs to increase domestic production of food and ensure they get to the market.
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