The Vice President of Nigeria, Professor Yemi Osinbajo has criticized the foreign exchange policy adopted by the Central Bank of Nigeria.
Osinbajo made this known while Speaking at the Mid-Term Ministerial Performance Review Retreat at the banquet hall of the state house in Abuja, saying that the exchange rate is artificially low and does not reflect the current market realities.
The vice president therefore advised the bank to have a “rethink” about its current forex demand management strategy.
It would be recalled that Naira currently trades at N414 at the official market against the U.S. dollar, and N570 at the parallel market.
He therefore said in his own respective view, the only way to improve supply, is for the country’s rate to be a reflective of the market as possible
The vice president however lamented the lack of access to forex for the importation of systems and raw materials as one of the contributory factors of the current economic situation, adding that the CBN appeared to be in competition with government ministries and agencies in implementing certain policies
He further said as for the exchange rate,
I think we need to move our rates to [be] as reflective of the market as possible. This, in my own respective view, is the only way to improve supply,” the vice president said.
He lamented the lack of access to forex for the importation of systems and raw materials as one of the contributory factors of the current economic situation.
While addressing the challenges of implementing the economic sustainability plan, the vice president called for partnership between affected ministries and the CBN. This he said will address the issue of people benefitting in more than one intervention programs.
Osinbajo therefore emphasized that it is imperative and that there must be synergy between the fiscal and the monetary authority. Maintaining that the country must be able to deal with the synergy and handle the synergy between the monetary authority, the CBN, and the fiscal side.
The Vice president therefore concluded by advising the ministry of industry, trade, and investment to handle MSMEs interventions, and the people should know what the CBN is doing. This therefore means that, if the CBN is intervening in the MSME sector, it should be with the full cooperation and consent of the ministry of industry.