Sunday, 21 February 2016

Naira has been devalued - Sanusi

Naira has been devalued - Sanusi – Emir of Kano Muhammadu Sanusi II believes Naira has already been devalued – Sanusi’s remarks comes against the backdrop of President Muhammadu Buhari refusal to devalue the currency of Nigeria – Sanusi says FG needs clarity of thinking in the handling of the foreign exchange policy The argument about devaluation of naira is misunderstood because the naira has already been devalued, this is according to the Emir of Kano Muhammadu Sanusi II. Speaking with BBC Africa on Business Report, Sanusi was quoted saying: “This argument (on devaluation) I think has first of all been framed wrong, it’s not an argument about do we devalue or do we not devalue. The naira has already been devalued. “What is the value of the naira? It’s what you can get for it, what you can get for the dollar in a free market between a willing buyer and a willing seller – and it is not 197. “All that is happening is that the government has chosen to sell its own dollars at a subsidised rate to the private sector. That’s what is happening. So, if you’re lucky, you’d get something worth N300 for N200 and you save N100. “For every $1 billion that the central bank sells, it has transloaded N100 billion to the private sector – that’s what is happening. “So you got a huge arbitrage opportunity, which either way undermines the government’s anti-corruption stance. “You also take so much money away from states and local governments, because this is money that from oil proceeds, from PPT, royalties, that should go to education and healthcare for the poor. “While the president is looking at the pain inflicted on the poor, by high prices of import, he also needs to look at the pain inflicted on them by taking away revenue that could go into education and healthcare.”

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