Lamido Sanusi Criticises Buhari’s Naira Policy

Respected former head of Nigeria’s Central Bank, Lamido
Sanusi has said the government should end its policy of trying to maintain the
value of the currency, the naira. Mr Sanusi said the drawbacks of the policy
“far outweigh its dubious benefits”, the Financial Times reports.

President Muhammadu Buhari had told the BBC last week that
he was not convinced of the need to “murder” the naira. 

However the falling oil price has put pressure on his
currency policy. While the authorities are keeping the official naira rate at around
200 to the US dollar, the black market rate is closer to 300 and sometimes more
than.

Because the Nigerian government relies on oil exports for
vital foreign exchange, the declining price means there are fewer dollars in
the country.

“The government does not have the reserves to keep the
exchange rate at its official level in the market, ” Mr Sanusi said again
while speaking with the Financial Times. The policy has “never
worked” wherever it has been tried, he added.