Peter Obi warns CBN to end fixed foreign exchange rate

According to ripplesnigeria report, Labor Party presidential candidate Peter Obi said he would overturn the Central Bank of Nigeria’s (CBN) fixed exchange rate if he wins the Aso Rock election in 2023.Information Guide Nigeria

Obi said the government does not allow market forces to determine foreign exchange rate movements, and the two foreign exchange rates currently moving are coincidental and do not reflect the reality of the market. He said this had to end.

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The former Fidelity Bank chairman made the announcement on Sunday in a statement posted to his Twitter account, saying it reflected Nigeria’s economy.

“The truth is that for long market forces have not determined the exchange rate of the Naira. The two-tier foreign exchange regime is a fluke. It has to end. Let the exchange rate be determined by the forces of demand and supply. It is that simple.

“Government must continue to collaborate with the organized private sector in this regard. Creating the enabling environment for raising employment must start with expanding the SMEs cluster via unfettered access to funding”, he wrote.

Obi also reiterated his stance against borrowing for consumption and stressed the need to invest in revitalization projects. Nigeria’s debt profile is expected to drop from N39.56 trillion at the end of December 2021 to the first Recall that it increased to N41.6 trillion at the end of the quarter.JAMB Result

“We will stop borrowing for consumption. All loans must be invested in regenerative projects. Inflation is a factor of spending on goods and services outstripping production.

“Since we have not resolved the minimum wage issue, we will not use wage and price controls to fight inflation. Rather, we will pursue a contractionary monetary policy. We will mop up excess liquidity by reducing the money supply within an economy”, he said.

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