Devaluation

The governors of the 36 states of the federation stopped short of calling for the devaluation of then air a, when they expressed concern over the continued free fall of the local currency against U.S. dollar on the parallel market and called on the federal government to urgently review the foreign exchange policy, with a view to reducing the gap between the parallel and official market rates. However, the call by the governors can only be achieved by fully floating the currency and allowing it to be market determined, which would lead to the devaluation of the naira. Briefing State House correspondents at the end of the first meeting of the National Economic Council (NEC) in 2017, which was presided over by acting President Yemi Osinbajo, the Deputy Governor of Nasarawa State, Mr. Si las Ag ha ra said that the Governor of the Central Bank of Nigeria( CB N ), Mr. God win E me fie le, has however appealed for patience. He said :“After a brief presentation on the for ex policy options by the CB N governor, council members generally expressed concern over the current exchange rate and called for an urgent review of the forex policy, especially with respect to reducing the gap between interbank and the parallel market rates. “The CBN governor sued for patience and understanding, assuring that the situation was being closely managed.” The call by the members of NEC, comprising the governors and the vice president, for are view of the for ex policy that would close the gap between the interbank and parallel markets, can be achieved by the free float of the naira, effectively leading to the devaluation of the nation’s currency.