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No more devaluation of the naira, says Buhari

September 16
15:49 2015

President Muhamadu Buhari has assured Nigerians and the international community that the country’s official currency, naira, will not be further devalued.

The naira, which was devalued in November 2015 to 168 against the dollar, has in less than a year seen devaluation to N197 on the official interbank market.

With falling oil prices, investors fear that the currency may be further devalued to a point where it does not have to take so much defending the naira.

While speaking with France 24 on Wednesday, Buhari said further devaluation would be avoided because it is not healthy for the economy.

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“The naira has been devalued, it used to be around 160, and now, it is hovering around 200 and above and I don’t think it is healthy for us to have the naira devalued further,” he said.

“That’s why we are getting the central bank to make modifications in terms of making foreign exchange available to essential services, industries, spare parts, essential raw materials and so on – but things like toothpicks and rice, Nigeria can produce enough of those.

“We don’t need to give our hard currency on that but those who insist of having tooth pick from Europe or from China, instead of using Nigerian toothpick, they can go and source their foreign exchange.”

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The Central Bank of Nigeria (CBN) has imposed strict control on access to foreign exchange as it hope to build up the naira profile.

In June 2015, it restricted access to foreign exchange for the import of 41 items ranging from rice and toothpicks as stated by the president.

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