Naira is "tied" to fx earnings....if oil prices crash naira has weakens
Monetary options?
Devalue; allow the market determine true exchange value. FX reserves are stronger & imports fall, Non oil exports rise. Imported inflation risk
"Defend" the Naira; allow the CBN determine the exchange value of the the naira. FX reserves constantly under pressure, imports rise....
Sure Nigeria can do a hybrid here and there but its really down to "devalue" or "defend"..none solves the problem completely.
We have to look at this holistically. CBN alone cant "defend" the Naira. if imports fall...Naira will rise.The culprit in this matter is imports.
So the questions is how to reduce imports?
Boeing and Airbus jets are locally subsidized.
However note....subsidize LOCAL production. ...
(If Nigeria needs a strong Naira is another topic)
Its our problem, we can fix it