He argued that multiple exchange rates had produced the “most optimal results when compared with other emerging markets…”

THISDAY has stumbled on a report by Bloomberg in 2019, where the ex-governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, warned that floating the naira would lead to a free fall in its value.

Titled, “Free Float Would Send Naira Tumbling,” Emefiele had argued at the time that the country’s system of multiple exchange rates had produced the “most optimal results when compared with other emerging markets in recent times”.

Under Emefiele, who was appointed in 2014, Nigeria had tightened capital controls and closely managed naira’s value.

The then CBN governor had consistently said it was the best way to curb inflation and boost manufacturing by discouraging imports, even though several foreign investors had faulted the policy and said it exacerbated an economic downturn.

“We will get even more aggressive,” he had said. “This is because we think the initiative the central bank has to cut imports and diversify the economy is yielding results.”

The report said shortages of foreign exchange had eased at the time due to higher crude prices and CBN’s opening of a currency-trading window for portfolio investors that allowed them to buy the naira at a weaker level.

The rate in that window had almost converged with the black-market rate of around N360 to the dollar at the time. The naira is currently valued at over N900 to the dollar at the official market and N1,400 to the dollar at the parallel market.

BigBlackPreek:
Yes he might have predicted it right but he's also an accomplice in the fall of the naira currency please!

RepoMan007:
I have asked countless times here too. Emefiele was obviously getting it right compared to some patchy-patchy sophistry of a politically-minded tinubu team.

It makes no sense to give someone going to buy hair extension and tractors dollar at same rates. Let the less important one, that's consumption focused, go to black market and buy at N2000 a dollar, but give the tractor importer at N200 a dollar. That way, you encourage people trying to increase local production. They can take future pressure off the dollar supply with import substitution.
Emefiele was right to partially disown some ridiculous imports via that list of 41 items. Today everyone is justling for same dollar and the price has gone haywire.

RepoMan007:
I have asked countless times here too. Emefiele was obviously getting it right compared to some patchy-patchy sophistry of a politically-minded tinubu team.

It makes no sense to give someone going to buy hair extension and tractors dollar at same rates. Let the less important one, that's consumption focused, go to black market and buy at N2000 a dollar, but give the tractor importer at N200 a dollar. That way, you encourage people trying to increase local production. They can take future pressure off the dollar supply with import substitution.
Emefiele was right to partially disown some ridiculous imports via that list of 41 items. Today everyone is justling for same dollar and the price has gone haywire.

nairalanda1:
Well, the ultimate problem with the naira has always been that NIgeria is not earning enough dollars.

We could earn more dollars by diversifying our economy, and , as former deputy CBN governor Moghalu has pointed out...by becoming a exporter of manufactured goods and services.

Tianamen1:

For now, only entertainment( movies, music and sports). We need to focus on promoting these things more.

masseratti:
people that are in charge of such policy will abuse it, not only that the hair extention guy will still go to CBN and buy at the price the tractor guy bought dollars and go to China to buy hair extensions, the best way forward is everyone to buy in same market.. Shikena.

richiemcgold:


...the question at this junction is "apart from oil, what else can we export? What can we offer the world out there?" Answer to this question will go a long way in proffering a lasting solution.

nairalanda1:
Well, the ultimate problem with the naira has always been that NIgeria is not earning enough dollars.

We could earn more dollars by diversifying our economy, and , as former deputy CBN governor Moghalu has pointed out...by becoming a exporter of manufactured goods and services.

Emefiele was right, but as CBN governor , it was not his work to point out what needed to be done. The government then, of which this current government is a continuation, should have propounded solutions. Instead, they kept us hooked up to oyel.

Bobloco:
...Bloomberg Report



https://www.arise.tv/how-emefiele-warned-naira-would-tumble-in-floated-fx-regime-in-2019-bloomberg-report/#google_vignette