Vice President Yemi Osinbajo on Monday said Nigeria’s official exchange rate is “artificially low”.

He made the remark during a speech at the Midterm Ministerial Performance Review Retreat which was held at the Banquet Hall, Presidential Villa, Abuja.

“As for the exchange rate, I think we need to move our rates to be more reflective of the market as possible,” Osinbajo said.

Vice President Yemi Osinbajo SAN delivers a speech during the Two-Day Mid-Term Ministerial Performance Review Retreat in the State House, Abuja on October 11, 2021. Photos: Tolani Alli — Vice President Yemi Osinbajo SAN delivers a speech during the Two-Day Mid-Term Ministerial Performance Review Retreat in the State House, Abuja on October 11, 2021. Photo: Tolani Alli

“This, in my own respectful view, is the only way to improve supply. We can’t get new dollars into the system when the exchange rate is artificially low. And everyone knows by how much our reserves can grow.

“So I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink.

“All those are issues, I’m sure, that when the CBN Governor has time to address, he will be able to address in full.”

The Central Bank’s official rate is N410 to a dollar, but rates in the parallel market go as high as N570.