Moghalu

Former CBN Deputy Governor Moghalu Challenges Naira-Dollar Exchange Rate Expectations

Former CBN Deputy Governor, Kingsley Moghalu, criticizes the unrealistic expectation of Naira stabilizing at N400 to the Dollar, stating it's wishful thinking.

Former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has been vocal about the unrealistic expectations regarding the Naira-Dollar exchange rate. Moghalu has adamantly criticized the notion that the Naira could stabilize at N400 to the Dollar, labeling it as wishful thinking. He pointed out that those anticipating such a rate are living in a dream world, highlighting the need for a more realistic market value. Additionally, Moghalu mentioned that a Naira to Dollar exchange rate of N900 to N1200 would be a fair value, emphasizing the importance of considering structural factors in determining exchange rates.

In a bold declaration, Moghalu emphasized that those hoping for the Naira to reach N400 to the Dollar are living in a dream world. He shed light on the economic factors that contribute to the Naira's inferiority to global currencies, especially the Dollar. Moghalu's stance challenges the prevailing optimism and underscores the importance of a pragmatic approach to exchange rate expectations. Furthermore, he stated that aiming for a Naira to Dollar rate of N400 is unrealistic, advocating for a more grounded understanding of market dynamics and economic realities.

In a recent statement, Moghalu reiterated that a Naira to Dollar exchange rate of N900 to N1200 would be a fair value. As a seasoned economist and former CBN official, his insights provide a valuable perspective on the complexities of exchange rate determination. Moghalu's emphasis on the need for a realistic assessment of the Naira's value highlights the intricacies of Nigeria's economic landscape and the challenges of achieving currency stability in a volatile global market.