Nigerian president says government resolved to keep currency steady

Nigerian President Muhammadu Buhari said on Sunday the government had resolved to keep the naira’s exchange rate steady while supporting the central bank’s decision to move away from the dollar peg, which is seen as overvaluing the naira.

Last week the central bank said it would shift to a more flexible exhange rate policy to stop Africa’s biggest economy sliding into recession but has yet to say exactly what the new policy is.

“We resolved to keep the Naira steady as, in the past, devaluation had done dreadful harm to the Nigerian economy,” Buhari said in the text of a speech published by his office on Sunday.

“I supported the monetary authority’s decision to ensure alignment between monetary policy and fiscal policy. We shall keep a close look on how the recent measures affect the naira and the economy,” he said.

“But we cannot get away from the fact that a strong currency is predicated on a strong economy,” he said, reiterating his opposition to a devaluation.