Emefiele under pressure over naira policy

Emefiele under pressure over naira policy

Pressure is mounting on Nigerian central bank Governor Godwin Emefiele over his currency policies, with lawmakers summoning him to Parliament to explain a slide in the naira on the black market and the main opposition party calling on him to quit.

Emefiele must appear at a hearing in Abuja, the capital, at 11 a.m. on Jan. 19, Senate Majority Leader Ali Ndume said on Thursday.

The governor has resisted devaluing the naira despite a rout in oil prices that’s slashed revenue in Africa’s biggest crude producer. With the backing of President Muhammadu Buhari, the governor has instead restricted supply of foreign currency, curbing output in the continent’s biggest economy and all but pegging the naira at 197-199 per dollar since March last year.

The shortage of dollars has led to the naira weakening in the past several months on the parallel market used by companies that aren’t banks. The black market rate fell to 300 against the dollar for the first time this week and was at a record 305 on Thursday. Read more

 

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