“You Need To Listen”: Tinubu’s Govt Reveals Plans To Achieve N500/$1 Exchange Rate Soon

“You Need To Listen”: Tinubu’s Govt Reveals Plans To Achieve N500/$1 Exchange Rate Soon

  • The administration of President Bola Tinubu has warned Nigerians hoarding the dollar to avoid huge losses in the coming weeks
  • The presidency warned against government policies that are expected to crash the dollar to as low as N500
  • Nigerian currency has resumed its free fall against the dollar across all foreign exchange markets

Dave Ibemere has over a decade of experience covering tech, energy, stocks, investments, and the economy

The presidency has warned Nigerians who are hoarding foreign currencies to stop or get ready for losses.

Tope Fasua, the special adviser to the president on economic matters, stated this at the “Cowries to Cash” lecture and lunch in Abuja on Tuesday, November 7, 2023.

Naira to dollar exchange rate
The Presidency expects naira to fall Photo credit: Benson Ibeabuchi
Source: Getty Images

According to Punch, Fasua said President Tinubu’s administration is working on policies to strengthen the naira.

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Naira to appreciate

Fasua, who represented the vice-president Kashim Shettima at the event, said he expects the naira to strengthen against the US dollar at the official and black markets in the coming weeks.

He also argued that the fall in the value of the currency of a country is a sign of conquest.

His words:

“When you want to destroy a country, destroy its currency first.”

He also warned Nigerians hoarding foreign currencies with the hope that the local currency will continue to fall to be prepared for the shock of their lives going by the current policies of the federal government.

"For those who engage in speculative activities, hoping for the devaluation of our currency, it's worth noting that the Central Bank and our government, under the leadership of the President, are implementing policies that will shock some of them.

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“You need to listen to the agenda, the man himself (Tinubu) and you will see that the level at which he is thinking is far ahead of most of us.
"Some people thought the naira would keep depreciating, but you are going to see the developments, maybe the naira will strengthen even further to maybe something around N500 or N600 a dollar.

The economic adviser further disclosed that the banking sector will be reorganised to make the naira more stable and stronger.

He added:

"If you want to position your exports properly, you have to be strategic, even in terms of the value of your currency. So you’re going to see all of these, including efforts from the fiscal side."

Expert reacts

Speaking on the federal government target, Omobola Adu, the Sub-Saharan Africa economist for BancTrust & Co, a UK-based firm, doubted the exchange rate can be achieved.

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“He wants to achieve it”: Experts speak as Tinubu’s Govt sets naira to dollar exchange rate target

His words:

"In the short to medium term, the CBN needs to fully clear matured FX forward (estimated around $7bn) and increase its intervention in the official market to support liquidity and convergence with parallel market rate.
"Combining the intervention with higher yields on government securities could then help attract foreign portfolio investors which will enhance FX liquidity.
"However, these are only immediate fix and for the long term stability of the currency, the government will need to implement efforts to boost production and investment in the Nigerian economy - especially in the oil & gas sector which account for over 80% of export earnings while encouraging the non-oil sector."

CBN explains decision to lift forex ban on 43 items, IMF agrees

The CBN, in an earlier report, defended its decision to raise foreign exchange restrictions on 43 items after eight years

According to new CBN directives, importers of items such as toothpicks, cement, and rice will now have full access to purchase dollars at official markets

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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