Peter Obi, the presidential candidate of the Labour Party (LP), has promised that if elected president in 2023, his administration would ensure there is only one foreign exchange (FX) market in Nigeria.
Nigeria currently operates a dual FX market.
While the investors and exporters (I&E) window is adopted at the official foreign exchange rate market, there is a parallel section of the market, known as the black market.
At the official market, the naira trades N433 to $1 and N740 to $1 at the parallel market.
However, many believe the parallel market is a reflection of the true value of the national currency as it serves many Nigerians.
Speaking on the prospects of transformative governance on Wednesday in Harvard University, America, Obi stated that the current exchange rate regime deters investors who are worried about currency risks.
He also said that his administration will eliminate restrictions around foreign exchange policy.
“As part of our monetary policy, we will seek to re-establish the independence of the CBN; and commit to a credible and transparent plan to normalise the exchange rate and bring inflation to single digits,” Obi said.
“We will remove import and forex restrictions and insist on a single forex market. The current system penalises exporters who bring in forex by forcing them to sell at a rate that they are unable to source for when they need to purchase forex.
“This multiple exchange rate regime encourages capital flight and deters investment, which has further worsened Nigeria’s forex situation,” he explained.