The president of Nigeria, Mohammadu Buhari on Monday said that his government has resolved to keep the Naira’s exchange rate steady. The President further supported the Central Bank’s decision to move away from the dollar peg which is seen as overvaluing the Naira.
Last week the Central Bank said it would shift to a more flexible exchange rate policy to stop Africa’s biggest economy sliding into recession, but they are yet to say what the new policy is.
In his statement, president Buhari said they will keep the Naira steady as it was before.
“We resolved to keep the Naira steady as in the past, devaluation had done dreadful harm to the Nigerian economy”, said Buhari.
The reigning president ousted Goodluck Jonathan in the last elections and people had a lot of expectations from him. Buhari got elected to fix the country which is gripped with corruption and mismanagement of government funds. Since he took over the office of presidency, his country has been facing a lot of challenges and it has registered the worst economic crisis which has also seen low oil prices whacking public finances and the Naira.
After occupying the presidential seat, the 73 years old leader described himself as a “converted democrat” and vowed to lead an administration committed to the needs of Nigeria’s 188 million people by cracking down on the scourge of corruption.
A shortage of dollars and currency curbs imposed by the Central Bank has caused firms to shut down plants in the country. But this situation does not threaten Buhari who said opposes devaluation of their currency.
“We will keep a close eye on how the recent measures affect the naira and the economy. But we cannot get away from the fact that a strong currency is predicted on a strong economy”, said Buhari.
The president further defended his decision to remove fuel subsidies and raise pump prices up to 67% to adjust government spending to austerity. However, he said these measures they are taking will lead to hardships.
Since last week, the Naira has fallen up to 350 to the dollar on the parallel market soon after the Central Bank announced its decision about policy change.