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LequteMan
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A member of the Monetary Policy Committee (MPC), Adedoyin Salami, has called on the Central Bank of Nigeria (CBN) to devalue the naira.
According to the recently released minutes of the 12-member MPC meeting held in January, Salami argued that the naira should be devalued and allowed to trade within a band. According to him, the fixed exchange rate would not work alongside a planned rise in government borrowing.
He said the naira was 10 per cent over-valued and voted to move the exchange rate band to plus or minus five per cent from N220. The naira trades some 40 per cent below the official rate on the black market against the dollar.
But Salami’s proposal gained no support at the meeting while the CBN was focused on exchange rate stability at the expense of inflation.
According to the recently released minutes of the 12-member MPC meeting held in January, Salami argued that the naira should be devalued and allowed to trade within a band. According to him, the fixed exchange rate would not work alongside a planned rise in government borrowing.
He said the naira was 10 per cent over-valued and voted to move the exchange rate band to plus or minus five per cent from N220. The naira trades some 40 per cent below the official rate on the black market against the dollar.
But Salami’s proposal gained no support at the meeting while the CBN was focused on exchange rate stability at the expense of inflation.
