Atiku’s Plan For The Naira Will Destroy The Currency – Emefiele
The presidential candidate of the Peoples’ Democratic Party, PDP, Atiku Abubakar, has said his government would allow the Naira on a free-float if elected.
This idea doesn’t sit quite well with the governor of the Central Bank of Nigeria, CBN Godwin Emefiele.
Emefiele said this was a bad idea and that such measure would lead to more investors taking away their money from Nigeria, as well as massive devaluation.
The nation’s current system of multiple exchange rates had produced the “most optimal results when compared with other emerging markets in recent times,” Emefiele told reporters on Tuesday after a meeting of the Monetary Policy Committee in Abuja.
But Atiku, a businessman and former vice president, said in an interview with Bloomberg he would float the currency if elected in the February 16 presidential election and replace Emefiele in June, when his first term ends.
Under Emefiele, who was appointed in 2014, Nigeria has tightened capital controls and closely managed the Naira’s value.
The Governor has consistently said this was the best way to curb inflation and boost manufacturing by discouraging imports.
Several foreign investors have faulted the policy and said it exacerbated an economic downturn triggered by the 2014 crash in oil prices.
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