Buhari is ready to devalue naira?

Buhari’s government is ready to adopt a more flexible option in the management of foreign exchange – It would portend devaluation of the naira, but attract more investors to the country Vice-president Yemi Osinbajo The government of President Muhammadu Buhari has hinted that it may finally adopt a more flexible option in the management of foreign exchange, Guardian reports. Vice-President Yemi Osinbajo while addressing investors at a conference organised by Renaissance Capital in Lagos state noted that the government was ready to “substantially re-evaluate” its foreign exchange policy. READ ALSO: I won’t kill Naira – President Buhari Analysts say that the flexible option would foretell devaluation of the nation’s currency, which currently exchanges for N197 against N318 at the black market. The vice president’s statement is coming on the heels of recent hike in petrol prices in the country, under a new deregulated regime, despite the known stance of Buhari to the contrary. Osinbajo clarified that the more flexible foreign exchange policy would “be able to attract more capital into the system and ease business.” “We believe there must be some substantial re-evaluation of the foreign exchange policy, especially with a view to increasing foreign exchange supply, encouraging capital importation and also being able to allow free flow of remittances…we expect that with a more flexible policy, we will be able to attract more capital into the system and ease business,” he stated. Nigeria has for many months faced substantial weakening in revenue from crude oil exports and a consequent foreign exchange crisis, READ ALSO: USA to press Buhari for naira devaluation However, the federal government restated it would not devalue the currency and retained official exchange rate with the United States dollars at 197-199 naira to a dollar. At the black market prices ranged from 240 naira to 320 naira exchanging for one dollar. President Buhari on different occasions insisted that he was not persuaded Nigeria could benefit from a further devaluation of the naira as the country was not manufacturing enough for export and depended more on imported goods. SHARE THIS NEWS!