The United States said on Monday it will press Nigeria in talks this week to adopt a more flexible foreign exchange rate to boost growth and investment in Africa’s largest economy.

U.S. Assistant Secretary of State for Africa, Linda Thomas-Greenfield, told an audience at the U.S. Institute of Peace that Nigeria should ensure the value of the naira currency versus the U.S. dollar was “more realistic.”

“While most people complain about the possibility of there being a devaluation, people are already operating on a devalued currency, and the only people who are not, are people who are doing it officially,” Thomas-Greenfield said.

“Our recommendation is, and we will have discussions about it … that they should look at the exchange rate and try to make the exchange rate more realistic to what the value of the naira is to the dollar,” she added.

She spoke ahead of talks in Washington on Thursday involving officials from the State Department, Pentagon and Treasury and their counterparts in the Nigerian government.

Nigeria faces its worst economic crisis in decades as the falling price of oil has slashed revenues, prompting the central bank to peg the currency and introduce curbs to protect foreign exchange reserves, which have fallen to an 11-year low.

Some members of Nigeria’s central bank monetary policy committee have said the naira should be devalued. However, President Muhammadu Buhari has said devaluation will not bring any benefit whatsoever to the Nigerian economy.

Thomas-Greenfield said the parallel currency market in Nigeria was “alive and well,” warning that a rigid exchange rate, capital controls and import bans could undermine President Muhammadu Buhari’s efforts to expand economic growth and fight corruption.

“Capital controls that limit access to foreign exchange rewards insiders and undermines the stated goals of Nigeria to increase domestic production because both Nigerian and expat investors alike tell us many businesses are unable to obtain the capital to purchase badly needed intermediate goods,” she said.

The naira trades some 40 percent below the official rate on the black market versus the dollar. The central bank last year pegged the exchange rate to curb speculative demand for the dollar and conserve foreign exchange reserves after it restricted access to hard currency for imports of certain items, frustrating businesses.

The International Monetary Fund last month called on Nigeria to lift the curbs and let the naira reflect market forces more closely, as the restrictions have significantly affected the private sector.

SOURCE: http://www.reuters.com/article/us-usa-nigeria-currency-idUSKCN0WU1M4




My comment - I am not surprised. This is EXACTLY what TB Joshua said in his 2016 prophecy: "The president will do everything to reject revaluation of the naira - which is a good idea from a good leader. But there will be overwhelming pressure which he will not be able to resist. Nigerians, support and pray for your leader. The future is crying for help."

Really!!! Hmmmm

Manage ur economy first b4 looking for Nigeria

This is a difficult decision for the president and monetary authorities. There are benefits/challenges on either side of the divide, but the decision of policy makers is based on what they consider the priority of the economy.
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I believe the priority right now is to promote local manufacturing & production, especially in critical sectors of the economy. This will cause some temporary hardship but will lead to longterm benefits like job creation, improved Balance of Trade, self-sufficiency, etc.

Make dem dey press dey go. we dey dey look where all the pressing go lead to

The simple way for that is to stir the next round of oil price fall and it's done.

Shey nah dem born us, or dem adopt ni, yeye people.

Well today is my birthday, so i am in a good mood.

I am tempted to believe that some of our economical woes may be connected to foreign interference.

On who's interest to devalue? Rather than returning our loot stored in different banks in US to develop our economy, the US is pressing for killing the naira.

US come and buy oil from us not devaluation!

DEIFIED:
Shey nah dem born us, or dem adopt ni, yeye people.

Well today is my birthday, so i am in a good mode.

Don't mind them.

Happy birthday jaree!

Just for those doubting TBJ actually said this, you can watch it on YouTube:


https://www.youtube.com/watch?v=NjrAXxXxaso?t=11m

E no go beta for dem

They have realised that IMF and World Bank suggestions failed.

It is good to have a resolute and strong-willed man as the President.

I just hope devine wisdom is called into play cos with d logic for and against this devaluation no one actually knows which side is saying d truth. My only support for d President stand is cos TB Joshua had earlier posited it to be a good idea.

I think am trusting the president on this one because if he could hold on when the budget have not been passed and oil was selling like water he can hold on now there is light. There will have been a president it is then i will be afraid

Anything to ease the sufferings, haba

Time wasters!

No need as the Dollar would be devalued after the general elections. Its only with time. Nonsense currency!

So ladies and gentlemen, why are the US and other western allies so concerned about the value of our Naira ?

Is this not a conspiracy ?

amaechi1:

Don't mind them.
Happy birthday jaree!

Thanks baba.

amaechi1:

Don't mind them.
Happy birthday jaree!

Thanks baba.

No be only "press" na "push"

molotov1:
So ladies and gentlemen, why are the US and other western allies so concerned about the value of our Naira ?

Is this not a conspiracy ?

I tire oooo no hunter means well for a game

This one nah cake walk for US...Obama go tell Buhari, choose one: devalue Naira or We will openly push for Biiafra Independence and support with military option if need be. Want to end up like Gaddafi? Before him finish, Buhari go say...consider it done!

I assure you between God and man...Buhari will come back and devalue Naira.

My question is simple. If we devalue our currency and exhaust our less than $30b in foreign reserves on imports (by subsidizing import and not replenishing the reserves as oil is at an all time low)- then what?

psucc:
The simple way for that is to stir the next round of oil price fall and it's done.

Pseudo economist, there is a level US can fight ISIS to & then have no choice but to throw in the towel.

The projection of sub 25$ crude price is no longer happening...

Do small research about shale production & the impact of low oil prices & my other points then let's have a robust argument...

amaechi1:
I am tempted to believe that some of our economical woes may be connected to foreign interference.

On who's interest to devalue? Rather than returning our loot stored in different banks in US to develop our economy, the US is pressing for killing the naira.

US come and buy oil from us not devaluation!

Tempted kwa? It's a FACT...

If we are self sufficient, we will no longer be available to boost their economy...

All the jagbajantis we keep importing, all the travel taxes, the medical tourism etc

No be press alone na match dem for match us to devalued our naira. The earlier the better we start putting this white people where they belong

Our president has said it times without numbers: give him a concrete reason to devalue the naira and he would gladly oblidge. Unfortunately, all we get is economic mumbo-jumbo that doesn't translate to a direct benefit to the populace.

President Buhari doesn't succumb to threat: of course the older generation knows this.

psucc:
The simple way for that is to stir the next round of oil price fall and it's done.

Loooolll...we've seen and survived worst,we can't be coerced into anything we don't want to do.

hahahahaha!


Who don't know all the sudden Economic crisis Nigerians are experiencing are manipulation from Buhari APC led government to cripple the naira and pay their debt to the US/UK that brought them to power.

UK/US are trying to buy up resources and invest in critical sectors of the economy for next to nothing once the Naira is crippled.


Now Americans have come out to say it to the daft Nigerians. Can dey read in between the line? Can they? hisssss!

Stolen:
hahahahaha!


Who don't know all the sudden Economic crisis Nigerians are experiencing are manipulation from Buhari APC led government to cripple the naira and pay their debt to the US/UK that brought them to power.

UK/US are trying to buy up resources and invest in critical sectors of the economy for next to nothing once the Naira is crippled.


Now Americans have come out to say it to the daft Nigerians. Can dey read in between the line? Can they? hisssss!

****just 1 question for you.

who America don help before?

superstar1:
E no go beta for dem

They have realised that IMF and World Bank suggestions failed.

It is good to have a resolute and strong-willed man as the President.

****.they never start yet with Buhari, you are here calling him strong strong man. All they need to do is to threaten him with Biiafra, he will devalue it to 300 naira. You don't understand how the world works. Let him proof stubborn...Gaddafi and Gbagbo treatment will await him.

Personally I think Naira should be devalued to 220 officially. This will bring parralel market rate to 230. This will help ordinary Nigerians. As it's right now only the elite are enjoying the astounding difference in official and parralel market rates.

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Please don't devalue naira oooh
All this western countries don't want good it about Africa

mars123:
slave just 1 question for you.

who America don help before?

Commenting is not by force if u have nothing valuable to contribute. It is better to be silence dan 4 people to know ur empty upstairs.

Until Nigerians exterminate imbeciles, we will continue to suffer. U are a hopeless liability to ur nation.