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Unified exchange rate to save Nigeria from financial instability
Nigerian President Bola Ahmed Tinubu has revealed that his administration implemented a unified exchange rate in order to save the…
Nigerian President Bola Ahmed Tinubu has revealed that his administration implemented a unified exchange rate in order to save the country from a financial crisis. The previous system of multiple exchange rates had created a black market for foreign currency, which was driving up prices and making it difficult for businesses to operate. By unifying the exchange rate, the government hopes to bring down prices and make it easier for businesses to import the goods and services they need.
President Tinubu could have kept the previous system, which benefited him and his friends, but he chose to unify the official and parallel market rates for the sake of the country. He knew that this would be a difficult decision, but he felt that it was necessary to take bold steps in order to improve the economy.
President Tinubu’s decision to implement a managed float, similar to his approach to fuel subsidy removal, was not without its critics. Some economists argued that the unified exchange rate would lead to higher inflation and make it more difficult for businesses to plan. However, President Tinubu believes that the long-term benefits of a unified exchange rate outweigh the short-term risks.
“I could have chosen to share the benefits by participating in the arbitrage, but I am not here for personal gain. That’s not why you voted for me,” President Tinubu stated.
He further emphasized the need to take action on fuel subsidies to stop the financial bleeding, leaving no choice but to address the issue promptly.
Resource Control
President Tinubu also highlighted the importance of effectively controlling and managing Nigeria’s resources to fulfil obligations to the Nigerian people.
He expressed his commitment to an open-door policy and called for partnerships to rescue and transform the nation.
- “The assignment is greater than personal interests. We must do the job,” he asserted.
Support from Nigeria Governors’ Forum
Governor of Kwara State and Chairman of the Nigeria Governors’ Forum (NGF), Abdulrahman AbdulRazaq, affirmed the willingness of state chief executives to work with President Tinubu regardless of political affiliation.
- “The NGF is delighted that both the President and Vice President are alumni of the Governors’ Forum. We are committed to working with a federalist who is determined to make things happen in a truly federal system. We reiterate our support for a renewed hope agenda, regardless of party differences,” AbdulRazaq affirmed.
Day One Reform
President Tinubu announced during his inauguration one month ago that his government would replace the different currency rate system put in place under the previous administration by unifying the exchange rate.
He underlined the value of a single exchange rate as well as the necessity of diverting money from arbitrage into worthwhile enterprises.
In addition, he demanded that interest rates be lowered, claiming that they are currently bad for Nigerians and businesses alike.
President Tinubu’s Statements
- “The central bank must work towards a unified exchange rate… They should redirect funds from arbitrage to meaningful investments.
- “We need to bring down interest rates. They are currently too high, which is harmful to the people and businesses. We must address these issues.”
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