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Tinubu could order CBN to peg the exchange rate at ₦30 to $1, but at what cost to our economy?
If President Tinubu wants the Naira to be exchanged for ₦30, he can order CBN to peg the exchange rate. This means he will have to pay the shortfall in the form of a subsidy to the forex market. This was what the former presidents were doing.It was an artificial exchange rate. Under Goodluck Ebele Jonathan, the federal government then pegged it at ₦380 to $1 and was subsidizing to keep it at that rate with $750million monthly. Under Buhari’s ...