Emir Sanusi faults Buhari’s naira policy

Emir Sanusi faults Buhari’s naira policy

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A former governor of the Central Bank of Nigeria (CBN) and Emir of Kano, Lamido Sanusi Lamido, has urged the Federal Government to  end its policy of trying to maintain the value of the  naira.

Sanusi said the drawbacks of the policy “far outweigh its dubious benefits”, according to the Financial Times reports.

President Muhammadu Buhari told the BBC last week that he was not convinced of the need to “murder” the naira.

The falling oil price has put pressure on his currency policy.

The authorities are keeping the official naira rate at around N200 to the dollar, but the black market rate is over N300.

The government relies on oil exports for vital foreign exchange and the declining price means there are fewer dollars in the country.

“The government does not have the reserves to keep the exchange rate at its official level in the market,” the traditonal ruler told the Financial Times.

The policy has “never worked” wherever it has been tried, he added.

In an effort to sustain the policy, the government has imposed currency restrictions, and halted the importation of certain goods in order to stop dollars leaving the country.

Newsweb

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