Economy

Aide clarifies Osinbajo’s view on exchange rate

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Aide clarifies Osinbajo’s view on exchange rate

By Chijioke OkoronkwoLaolu Akande, Senior Special Assistant to the President on Media and Advertising, Office of the Vice President, provided clarification on Vice President Yemi Osinbajo’s view on the naira exchange rate.

Akande, in a statement released Tuesday in Abuja, said the vice president advocated a foreign exchange policy that reduced arbitrage and corruption, offering Nigerians cheaper dollars.

Osinbajo made a presentation on the Economic Sustainability Plan (ESP) on Monday at the ministerial retreat at the State House Banquet Hall, Abuja.

“Our attention was drawn to statements and media reports that falsely described as a call for devaluation, the Vice President’s view that the exchange rate of the Naira was being kept artificially low.

“Osinbajo is not calling for the devaluation of the Naira; he has always argued against a willy-nilly devaluation of the Naira.

“For context, the vice president’s point was that currently the Naira exchange rate only benefits those who are able to get the dollar at N410, some of them just turning around. and sell in the parallel market at N570.

“It is to stop this enormous arbitrage of more than N 160 per dollar that the vice-president was talking about; such a massive difference discourages doing business, whereas selling the dollar can yield 40% profit, ”he said.

He said the vice president called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which has opened up compelling opportunities for arbitrage and corruption.

“It is a well-known fact that foreign investors and exporters have complained that they cannot bring foreign currency to N410 and then have to buy foreign currency in the parallel market to N570 to meet their various needs due to the unavailability of foreign currencies. to exchange.

“Only an exchange rate more representative of the market would improve this; with an increase in the supply of dollars, rates will fall and the value of the Naira will improve.

“The real problem facing the economy on this issue is how to improve the supply of foreign currency, but that will not happen if we do not allow mechanisms such as the Importer and Exporter Window to work.

“If we allow this market mechanism to work as expected, we will find that the Naira will appreciate against the dollar as we restore confidence in the system,” he said.

Source: NAN

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