Ex- CBN Boss Joseph Sanusi asks government to devalue

By Okey Onyenweaku

A former Central Bank of Nigeria (CBN) Governor, Chief Joseph Sanusi, has lent his voice to those clamouring for the devaluation of the Naira.

Sanusi, CBN governor between 2000 and 2004 has said that refusing to devalue the currency was akin to postponing the evil day.

According to him, allowing an official rate of N197 to a dollar with a parallel market rate of over N300 to a dollar was disruptive of economic stability.

He insisted that the naira was already devalued and that Nigeria was in denial refusing to accept reality.

Currently the naira trades at N322 to a dollar in parallel markets.

Several local and foreign commentators have argued that the government should allow the market determine the exchange rate without interference.

Such observers noted that sooner rather than later market realities would force the hands of government to devalue the currency to set the economy along the path of sustainable growth.

Since the price of crude took a sharp drop in June 2014 from $114 to hover between $30 to $35 currently, the exchange rate has been volatile.