Dollar to Naira could Jack Up to N1,500 soon – See Reasons below.
Muhammadu Sanusi II, the former Emir of Kano, has expressed a concerning prediction. He believes that if the Central Bank of Nigeria decides to print more naira as a solution to the country’s problems, the value of the naira could significantly depreciate, possibly reaching a rate of N1,500 per US dollar.
In essence, Sanusi is warning that increasing the supply of naira without corresponding economic backing or measures to support its value could lead to a substantial devaluation of the currency. Such devaluation can have adverse effects on the economy, including higher inflation and a decrease in the purchasing power of citizens when dealing with foreign currencies.
Sanusi’s statement underscores the importance of responsible monetary policies and economic management to maintain the stability of a country’s currency and prevent harmful devaluation. It serves as a cautionary note regarding the potential consequences of printing more currency without addressing underlying economic issues.
Muhammadu Sanusi II, the former Emir of Kano and former governor of the Central Bank of Nigeria has criticized the economic management during former President Muhammadu Buhari’s administration. He highlighted several concerns:
- Lack of Consultation with Experts: Sanusi criticized the Buhari administration for not consulting economic experts when making significant financial decisions. This lack of expert input may have contributed to economic challenges faced by the country.
- False Economic Prosperity: Sanusi mentioned that during the Buhari administration, Nigeria appeared to be prosperous on the surface, but this prosperity was based on borrowing. In other words, the government was relying heavily on loans to maintain the appearance of a robust economy.
- Unsustainable Debt: He pointed out that despite the revenue generated during that period, it was insufficient to service the accumulating debt. This suggests that Nigeria was accumulating debt at a rate that was not sustainable.
- Concerns About Currency Devaluation: Sanusi also expressed concerns about the potential devaluation of the Nigerian currency (the naira) if the Central Bank printed more money to address economic problems. He suggested that such a move could lead to the naira losing value against the US dollar.
Overall, Sanusi’s remarks highlight his reservations about the economic decisions made during the Buhari administration, including a lack of consultation with experts and concerns about the country’s financial stability and currency value. These comments serve as a critique of the economic management practices during that period.