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LequteMan
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Nigeria's Vice-President Yemi Osinbajo has said FG cannot change its foreign-exchange rules to satisfy portfolio investors, giving support to the central bank’s currency controls.
The government wasn’t “unduly worried” by a decision from JPMorgan Chase & Co to remove the nation’s bonds from its emerging-market bond indexes, Osinbajo said in an interview on Thursday.
Nigeria’s inclusion in the indexes in 2012 had attracted “hot money” into the economy, which has now reversed, he said.
“We need short-term foreign exchange controls even at the risk of delisting at JPMorgan,” Osinbajo said. The restrictions “have really been successful. They have led to a situation where our foreign-exchange reserves have stabilised and our current-account deficit has narrowed, which is good in the short term, but it can only be short term.”
Osinbajo’s comments echo those of President Muhammadu Buhari, who said on September 16 that he opposes a further devaluation of the naira.
The government wasn’t “unduly worried” by a decision from JPMorgan Chase & Co to remove the nation’s bonds from its emerging-market bond indexes, Osinbajo said in an interview on Thursday.
Nigeria’s inclusion in the indexes in 2012 had attracted “hot money” into the economy, which has now reversed, he said.
“We need short-term foreign exchange controls even at the risk of delisting at JPMorgan,” Osinbajo said. The restrictions “have really been successful. They have led to a situation where our foreign-exchange reserves have stabilised and our current-account deficit has narrowed, which is good in the short term, but it can only be short term.”
Osinbajo’s comments echo those of President Muhammadu Buhari, who said on September 16 that he opposes a further devaluation of the naira.