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Osinbajo not calling for devaluation of Naira – Laolu Akande

“Osinbajo is not calling for the devaluation of the Naira; he has at all times argued against a willy-nilly devaluation of the Naira.”

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Vice President Yemi Osinbajo
Vice President Yemi Osinbajo

Laolu Akande, the spokesperson of Vice President Professor Yemi Osinbajo, has explained that his principal was not calling for the devaluation of Naira.

This came up few hours after Osinbajo commented on monetary policy at the Mid-Term Ministerial Performance Review Retreat on Monday, October 11.

The vice president spokesperson who made the clarification in a statement said:“Our attention has been drawn to statements and reports in the media mis-characterising as a call for devaluation, the view of the vice president that the Naira exchange rate was being kept artificially low.

“Osinbajo is not calling for the devaluation of the Naira; he has at all times argued against a willy-nilly devaluation of the Naira.

“For context, the vice president’s point was that currently, the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.

“It is stopping this huge arbitrage of over N160 per dollar that the vice president was talking about; such a massive difference discourages doing proper business, when selling the dollar can bring in 40 per cent profit,“ he said.

He explained further that the Vice President argued for improved supply-side policies rather than simply managing demand which opened up the sector for many exploits.

“It is a well-known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.

“Only a more market reflective exchange rate would ameliorate this; with an increase in the supply of dollars, the rates will drop and the value of the Naira will improve,” 

 “If we allow this market mechanism to work as intended, we will find that the Naira will appreciate against the dollar as we restore confidence in the system,’’ 

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