By Felix Onuah

ABUJA (Reuters) – Nigeria’s central financial institution must evaluation its international alternate administration technique and be certain that the naira’s valuation displays market actuality, Vice President Yemi Osinbajo stated on Monday.

Nigeria has a number of alternate charges working in parallel, a system put in place throughout a 2016 oil worth crash as a result of the federal government was searching for to keep away from a big official devaluation of the naira as a matter of nationwide delight.

Osinbajo urged the central financial institution to rethink its demand administration coverage, which it has used to limit imports in an try and handle stress on the foreign money.

“I feel we have to transfer our charges to be as reflective of the market as potential. This … is the one method to enhance provide (of {dollars}),” the vice chairman stated.

He was talking at a mid-term retreat of presidency ministers chaired by President Muhammadu Buhari.

Osinbajo stated the naira had since June been buying and selling at 411 to the U.S. greenback on the official market , supported by the central financial institution, and at 565 naira on the black market , the place it trades extra freely.

“We will not get new {dollars} into the system, the place the alternate price is artificially low,” he added.

A central financial institution official final month stated the financial institution was fearful about boosting greenback provide on the foreign money market and never valuation of the naira, including that the extent of the foreign money was anticipated to regulate based mostly on demand. He stated market failures had made the financial institution undertake a managed float regime.

Nigeria has been battling greenback shortages ensuing from low costs for oil, its predominant export, and disruptions linked to COVID-19. The central financial institution has devalued the foreign money 3 times since March final yr, however the naira has continued to weaken.

The native foreign money has hit new lows on the black market because the central financial institution in July banned greenback gross sales to bureau de change operators in a string of curbs on the foreign money market.