George Moghalu, a former Deputy Governor of the Central Bank of Nigeria, has expressed his opinion on the Naira to Dollar exchange rate. Here are the key points from his opinion:
Unrealistic Expectations: Moghalu has stated that those expecting the Naira to stabilize at N400 to the Dollar are living in a dream world. He believes that the exchange rate should reflect its market value in reality, rather than an artificial rate maintained by the central bank .
Market Value: Moghalu argues that the exchange rate should be determined by market forces and reflect the true value of the Naira. He emphasizes the importance of avoiding artificial rates that may please certain political interests but do not align with economic realities .
Foreign Reserves: Moghalu points out that Nigeria does not have $100 billion in foreign reserves, which raises questions about the basis for the Naira's exchange rate returning to a lower value .
Long-Term Solutions: Moghalu suggests that the solution to the Naira's exchange rate problem lies in making the Nigerian economy more productive and export-driven. He believes that focusing on value-added manufacturing and earning foreign exchange beyond oil will contribute to a stronger Naira .
