Nigeria's
respected former central bank chief has said that exchange rate
policies backed by President Muhammadu Buahri are doomed to fail, the UK-based
Financial Times newspaper reports. Lamido
Sanusi, who is now the emir of Kano, an influential religious
post among Muslims in Nigeria, told the Financial Times that he was
disappointed to see Mr Buhari’s strong security and anti-corruption
efforts overshadowed by a monetary policy regime with “very obvious drawbacks
that far outweigh its dubious benefits”.
Nigeria's
central bank last year imposed tight capital controls and pegged the currency,
the naira, at an official rate currently 35% stronger than the black
market rate.
The
policies sparked capital flight and damaged the West African
state's reputation as a frontier market investment destination, the
Financial Times newspaper reports.
Mr
Sanusi was the central bank governor from 2009 to 2014, when he was suspended
by then-President Goodluck Jonathan following a row over corruption in the oil
sector.
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