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President Buhari questions the decision to float the naira

Nigeria

<p>Nigerian president Muhammadu Buhari has expressed skepticism over decision to float the naira.</p> <p>While speaking to business leaders, the president said that he doesn’t like the returns he gets from the Central Bank of Nigeria (<span class="caps">CBN</span>).</p> <p>“How much benefit can we derive from this ruthless devaluation of the naira,? I’m not an economist neither a business man, I fail to appreciate what is the economic explanation,” he added.</p> <p>This after Nigeria’s central bank last week, allowed the market to determine the rate of the naira to the dollar, which was pegged at 197 naira to one dollar.</p> <p>The move was to alleviate chronic currency shortages that have depressed growth in Africa’s biggest economy.</p> <p>Previously, Buhari had consistently refused to abandon an official exchange rate of the naira to the dollar ,arguing that to do so would stoke inflation in the country.</p> <p>Analysts however say that the devaluation of the naira will bring back investor confidence as foreign companies had found it increasingly difficult to do business in Nigeria.</p>

How much benefit can we derive from this ruthless devaluation of the naira,? I'm not an economist neither a business man, I fail to appreciate what is the economic explanation

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