To ensure that the stability of the naira against the economic realities of the time, the Central Bank of Nigeria, CBN, Governor, Sanusi Lamido Sanusi has stated that he would use the nation’s foreign reserves to defend the currency.
Sanusi told reporters on Tuesday that he saw no positive outcome in devaluing the Naira as some economists have suggested.
He argued that unless a directive came from a higher quarter, he was prepared to continue with the present position.
According to him: “as far as the Naira is concerned, the CBN has always said that we are committed to its stability. I know there are some people who don’t share that view. But I have not personally heard any economically valid argument as to the benefits of devaluating the Naira up to this point in time.
“It will not improve our export nor reduce our imports into the country. It will not improve our fortunes as long as our structural reforms have not been implemented.
“My view and the view of the CBN is that if we will have to use some of the our serves to support the currency, we will. No central bank governor will say that he will support the currency at all and every cost but we want to be very clear in our minds and to the public that there is no country in the world that will allow its currency to be just determined by the market.”