Nigerian Presidential Candidate Says Fixed Exchange Rate Regime ‘Has to End’ — Touts Success of Fintech Unicorn Flutterwave

Nigerian Presidential Candidate Says Fixed Exchange Rate Regime ‘Has to End’ — Touts Success of Fintech Unicorn Flutterwave

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by Terence Zimwara
A Nigerian presidential election candidate, Peter Obi, has stated the native foreign money’s trade charge towards the greenback should not be mounted however have to be decided “by the forces of demand and provide.” Pointing to the success of the Nigerian fintech Flutterwave, the candidate stated if elected, his authorities will create an enabling atmosphere for different startups to equally thrive and succeed.
A candidate in Nigeria’s upcoming presidential elections, Peter Obi, has stated the native foreign money’s official trade charge — at present pegged at just below N450 for each greenback — have to be decided by market forces. Obi, who’s one in all three most important candidates who’re in search of to interchange outgoing President Muhammadu Buhari, additionally attacked the two-tier trade charge regime at present in use.
The remarks by the Labour Get together candidate come simply over a month after the naira plunged to its worst trade charge ever towards the US greenback. As reported by Bitcoin.com Information in late July, the naira had reached an all-time low of N710 for each greenback. In response to the naira’s then quick-fire depreciation, the Central Financial institution of Nigeria (CBN), which final devalued the naira in Might 2021, blamed speculators.

Instantly following the CBN’s allegations, Nigeria’s anti-corruption physique, the Financial and Monetary Crimes Fee (EFCC) descended on foreign money sellers and bureau de change operators in and across the Wuse Zone 4 space of Abuja. The EFCC’s raid on foreign money speculators initially appeared to spark the naira’s restoration. Nonetheless, greater than a month later, the naira’s trade charge had returned to over N700 per greenback.

‘A Contractionary Financial Coverage’ Envisioned

In a Twitter thread which outlined his plans for the nation ought to he win the presidency, Obi urged an answer that he stated can finish the naira’s woes. He defined:
The reality is that for lengthy market forces haven’t decided the trade charge of the naira. The 2-tier overseas trade regime is a fluke. It has to finish. Let the trade charge be decided by the forces of demand and provide. It’s that easy.
Along with abandoning the mounted trade system, the Labour Get together candidate stated when elected his authorities won’t struggle inflation utilizing worth and wage controls. As an alternative, it is going to “pursue a contractionary financial coverage.”
In the meantime, in the identical thread, Obi additionally touted the Nigerian fintech startup Flutterwave, which has since turn into a billion-dollar firm. To make sure that extra startups equally succeed, Obi stated his authorities “will create an enabling atmosphere for our startups to thrive.” This will probably be achieved by imposing a authorized framework that protects each “overseas buyers and their indigenous companions.”
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Tags on this story
Central Bank of Nigeria (CBN), Flutterwave, Monetary Policy, Muhammadu Buhari, naira depreciation, naira exchange rate, Peter Obi

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Terence Zimwara is a Zimbabwe award-winning journalist, creator and author. He has written extensively in regards to the financial troubles of some African nations in addition to how digital currencies can present Africans with an escape route.

Picture Credit: Shutterstock, Pixabay, Wiki Commons
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