Why Naira is undervalued - Financial expert, Gbolade

Idakolo Gbolade, Chief Executive Officer of SD & D Capital Management, said one of the impacts of the recent floating of the Naira in the foreign

Gbalode disclosed this on Friday in an interview with the DAILY POST.

In his reaction to the development, Gbolade explained that operational reforms in forex always lead to currency undervaluation; the same was the case in China a few years ago. “The policy of exchange rate reforms always leads to the undervaluation of a nation’s currency, as was implemented by China a few years ago. This process allows market forces to determine the currency’s value based on demand and attracts foreign investment due to its trading flexibility. The Nigerian government using the China model will gain the following in the short run and long term,” he stated.

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