The Minister of Information, Lai Mohammed, has said that the current policy of multiple exchange rates for the Naira is working well, and as such the Central Bank of Nigeria (CBN) is unlikely to change it anytime soon.
Alhaji Lai Mohammed said Nigeria has maintained multiple exchange rates since currency controls were introduced in 2015 to counter the impact of falling prices for crude oil, which provides 90 per cent of the country’s Foreign Exchange earnings. The International Monetary Fund (IMF) has long called for Nigeria to scrap its multiple rates.
Lai Mohammed, said the current system, which involves multiple exchange rates while the official rate is held at N306 to the US Dollar, was working well. He said: “Right now, the currency is converging naturally at about N360 to the Dollar. Three years ago, the same was about N525. I don’t think CBN is in a hurry to change this.
Inflation is down and the reserves are up. We are in a better position to defend the Naira,” Lai Mohammed told Reuters. The tenure of Central Bank Governor, Godwin Emefiele, is due to end in June. A decision on his future is likely to be among the first major announcements in Buhari’s second term.