Sanusi: Naira will firm if allowed to devalue beyond 300/$1 – The Cable

dollar to naira

Muhammad Sanusi II, the emir of Kano and former governor of the Central Bank of Nigeria (CBN), says the naira will firm, if it is allowed to devalue beyond 300/$1 based on market realities.

Speaking at the Risk Managers Association of Nigeria’s (RIMAN) annual conference in Lagos, Sanusi said the CBN has a fantastic policy document, but it needs to allow it to be fully implemented.

“There is a fantastic document by the central bank on the flexible exchange rate. We need to implement that document properly” THISDAY quoted Sanusi to have said.

“You have to let the market decide where the naira is going to be, to start with, before inflows come in and then when the inflows are in, you have an appreciation of the naira.

“So you have to live with a devaluation to N300/$1 plus and then it will firm up to N270/$ or N280/$1 or whatever. But so long as you target a rate of N280/$1, you are just moving the peg,” he argued.”