CBN’s defending of the naira disastrous, says The Economist – The Cable

The Economist, a British newspaper, has branded the Central Bank of Nigeria (CBN’s) defending of the naira as “disastrous”, saying the currency has been “floating like a stone” having technically been allowed to float for a single day.

In an article put up by the medium on Thursday, it argued that the Godwin Emefiele, the CBN governor, was following the directives of President Muhammadu Buhari on the state of the currency.

“SOMETIMES the worst is not bad enough. Or such is the case for Nigeria’s currency, which nosedived by 30% when the central bank first removed its peg to the dollar on June 20th,” the London based newspaper said.

“The naira is now this year’s poorest-performing currency in Africa. Internationally, only the currencies of Venezuela and tiny Suriname have fared worse. Yet were it truly free, it would be weaker still.

“In fact, the naira’s free float seems to have lasted exactly a day. Since its sharp drop on the first day of its devaluation, the currency has more or less flatlined at about 282 per dollar.