The chairman of the presidential committee on fiscal policy and tax reforms, Taiwo Oyedele has revealed that the federal government under the leadership of President Bola Tinubu is working on achieving a fair price in the exchange of the dollar to the naira before the end of 2023.
Speaking with Bloomberg on Monday where he explained how the government intends to achieve this, Oyedele said the government intends to introduce new foreign exchange rules, including a crackdown on illicit currency trading.
According to him, the new rules and reforms are expected to result in the naira closing the gap with the unofficial rate and reaching a fair price.
Oyedele added that part of the rules and measures the government is planning is to clear a backlog of dollar demand estimated at about $6.7 billion, bolster the naira forward market, and set transparent rules for the operations of the official market.
In his view, the new measures would give a new lease of life to all legitimate foreign exchange transactions while stifling the illicit “black market” for foreign currency.
“We think all of that will happen before December, and maybe in a matter of a couple of weeks we will begin to see the results, such that before the end of the calender year, naira should find its true value, not the one that is being done currently in the parallel market,” Oyedele said.
He said the government sees a “fair price” for the dollar at “N650 to N750”.
Oyedele added that the current difference between the official and parallel market rates “means you are sucking liquidity and supply from the official market to the parallel market, because everyone wants the premium”.
Based on market reports on Monday, one dollar exchanges for N1,150 at the parallel market.