CBN’s Emefiele, Others On Refusing Further Devaluation Of Naira

The governor of the Central bank of Nigeria, Godwin Emefiele, has commented on the series of Naira devaluation that has plunged the country into a near recession with food prices at an all-time high.

Following a revaluation, many have backed the decision of the governor, including the Vice President of Industrial Global Union, Comrade Issa Aremu who recently spoke at a one-day interactive session of stakeholders in Kaduna, described currency devaluation in a developing economy as “false economics”.

He observed that the best way to measure the worth of the Naira was by “market fundamentals” directed at driving growth and development rather than satisfying “the insatiable urge of currency speculators for unearned profits on the streets.”

He said Nigeria depends on imported inputs for industrial production, adding that “unmanaged exchange rates” and attendant devaluation would only further increase the cost of production, depress wages, prevent progressive internal competition and make economic recovery intractable.

However, people who seek personal gain at the expense of the country and its economy, especially those who earn in foreign currency, continue to use parallel market rates to put pressure on the Central Bank of Nigeria (CBN) to devalue the Naira.
Things seem to have gotten to a head as the CBN focuses on reversal policies that allow beneficiaries of diaspora remittances and foreign exchange transfers into domiciliary accounts, to collect the proceed in foreign currencies. These policies aimed at shoring the Naira helped her gain #20 against the dollar.

The CBN Governor, Mr. Godwin Emefiele who commented that they would no longer have their way, said this and more at the end of the last 2020 Monetary Policy Committee (MPC) meeting, in Abuja, on Tuesday.

He said “It is unfair that even analysts who should know are using parallel market rate to say that our currency is overvalued and therefore calling for devaluation.  This is very unfortunate.