The United States, U.S yesterday revealed its intention to by this week get Nigeria to adopt a more flexible foreign exchange rate to boost growth and investment in the largest economy in Africa, Reuters reports.
In a move that suggests pressing for devaluation of the Nigerian currency, the U.S Assistant Secretary of State for Africa, Linda Thomas-Greenfield, told an audience at the U.S. Institute of Peace that Nigeria should ensure that the value of the naira currency versus the American greenback was “more realistic.”
According to her, “While most people complain about the possibility of there being a devaluation, people are already operating on a devalued currency, and the only people who are not, are people who are doing it officially.
“Our recommendation is, and we will have discussions about it … that they should look at the exchange rate and try to make the exchange rate more realistic to what the value of the naira is to the dollar.”
She spoke ahead of talks in Washington to be launched by Secretary of State John Kerry on Wednesday and which will focus on Nigeria’s economy, security and development.
Noting that the parallel currency market in Nigeria was “alive and well,” Thomas-Greenfield warned that a rigid exchange rate, capital controls and import bans could undermine President Muhammadu Buhari’s efforts to expand economic growth and fight corruption.
“Capital controls that limit access to foreign exchange rewards insiders and undermines the stated goals of Nigeria to increase domestic production because both Nigerian and expat investors alike tell us many businesses are unable to obtain the capital to purchase badly needed intermediate goods,” she stated.
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