Exchange rate policies backed by President Muhammadu Buahri are doomed to fail – Sanusi

Hamilton Nwosa
Writer

Ad

Oil Prices Set for Moderate Dip on Gaza Ceasefire

Crude oil prices are on course for another weekly decline following the news of a ceasefire between the Israeli government and Hamas, which was ratified today by Tel Aviv. At the time of writing, Brent crude was trading at $64.90 per barrel, with West Texas Intermediate at $61.28, as the Middle East war premium vanished. “This (deal) saw the…

Farouk Lawan Thanks Tinubu After Receiving Presidential Pardon

By Abiola Olawale Farouk Lawan, a former member of the House of Representatives, has appreciated President Bola Tinubu for granting him a presidential pardon. The New Diplomat reports that on Thursday, Tinubu, during a National Council of State meeting, granted a presidential pardon to Lawan and several others. Among others are one of Nigeria’s founding…

Ad

Nigeria’s respected former central bank chief has said that exchange  rate policies backed by President Muhammadu Buahri are doomed to fail, the UK-based Financial Times newspaper reports.

Lamido Sanusi told the Financial Times that he was disappointed to see Mr Buhari’s strong security and anti-corruption efforts overshadowed by a monetary policy regime with “very obvious drawbacks that far outweigh its dubious benefits”.

Nigeria’s central bank last year imposed tight capital controls and pegged the currency, the naira, at an official rate currently 35% stronger than the black market rate.

The policies sparked capital flight and damaged the West African state’s reputation as a frontier market investment destination, the Financial Times newspaper reports.

Mr Sanusi – who is now the emir of Kano, an influential religious post among Muslims in Nigeria – was the central bank governor from 2009 to 2014, when he was suspended by then-President Goodluck Jonathan following a row over corruption in the oil sector.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp