Why $1 Will Soon Exchange for N2,000 – Adewole, SDP Presidential Candidate

By Bada Abraham

A Former SDP Presidential candidate, Adewole Adebayo has alleged that Nigeria might end up with N2000 exchange rate to 1 dollar before there is an equilibrium. He said in an interview with AIT news that the floating of the naira can only be done by a government that has a enough dollars in its foreign reserve

He said, ”If you look at other countries that are floating their currency, they have the trillion dollars in foreign reserve. They have 500 billion in Foreign reserves. If you have a billion dollars in foreign reserve, you need to be careful that you are floating your currency. Then you need to allow the market to prize you. And by that, I don’t want to frighten Nigerians but we might end up with N2000 to 1 dollar before we have equilibrium. Because in Economics, what you are looking for is equilibrium. In the area of high pressure, you will want to release that pressure to an area of low pressure.”