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

A Nigerian presidential election candidate, Peter Obi, has mentioned the native foreign money’s change price in opposition to the greenback should not be fastened however should be decided “by the forces of demand and provide.” Pointing to the success of the Nigerian fintech Flutterwave, the candidate mentioned if elected, his authorities will create an enabling setting for different startups to equally thrive and succeed.

Two-Tier Exchange Rate Regime Attacked

A candidate in Nigeria’s upcoming presidential elections, Peter Obi, has mentioned the native foreign money’s official change price — at present pegged at just below N450 for each greenback — should be decided by market forces. Obi, who’s considered one of three fundamental candidates who’re searching for to switch outgoing President Muhammadu Buhari, additionally attacked the two-tier change price regime at present in use.

The remarks by the Labour Party candidate come simply over a month after the naira plunged to its worst change price ever in opposition to the US greenback. As reported by Bitcoin.com News 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 Bank of Nigeria (CBN), which final devalued the naira in May 2021, blamed speculators.

Immediately following the CBN’s allegations, Nigeria’s anti-corruption physique, the Economic and Financial Crimes Commission (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. However, greater than a month later, the naira’s change price had returned to over N700 per greenback.

‘A Contractionary Monetary Policy’ Envisioned

In a Twitter thread which outlined his plans for the nation ought to he win the presidency, Obi prompt an answer that he mentioned can finish the naira’s woes. He defined:

The reality is that for lengthy market forces haven’t decided the change price of the naira. The two-tier overseas change regime is a fluke. It has to finish. Let the change price be decided by the forces of demand and provide. It is that straightforward.

In addition to abandoning the fastened change system, the Labour Party candidate mentioned when elected his authorities is not going to battle inflation utilizing value and wage controls. Instead, it can “pursue a contractionary financial coverage.”

Meanwhile, in the identical thread, Obi additionally touted the Nigerian fintech startup Flutterwave, which has since grow to be a billion-dollar firm. To be certain that extra startups equally succeed, Obi mentioned his authorities “will create an enabling setting for our startups to thrive.” This can be finished by implementing a authorized framework that protects each “overseas buyers and their indigenous companions.”

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