By Babajide Komolafe, with agency report

The United States, yesterday, said that the Federal Government should implement a flexible exchange rate policy that ensures a more  realistic value of the naira, adding that the current exchange rate policy involving foreign exchange restrictions hinders the domestic economy.

U.S. Assistant Secretary of State for Africa, Linda Thomas-Greenfield, told an audience at the U.S. Institute of Peace that Nigeria should ensure that the value of the naira versus the U.S. dollar was “more realistic.

“While most people complain about the possibility of there being a devaluation, people are already operating on a devalued currency, and the only people who are not, are people who are doing it officially.”

“Our recommendation is, and we will have discussions about it … that they should look at the exchange rate and try to make the it more realistic to what the value of the naira is to the dollar,” Thomas-Greenfield said..

She spoke before talks in Washington to be launched by Secretary of State, John Kerry, on Wednesday and which will focus on Nigeria’s economy, security and development.

Nigeria faces its worst economic crisis in decades as the falling price of oil had slashed revenues, prompting the Central Bank to peg the currency and introduce curbs to protect foreign exchange reserves, which have fallen to an 11-year low.

Some members of Nigeria’s Central Bank monetary policy committee have said the naira should be devalued.

Thomas-Greenfield said the parallel currency market in Nigeria was “alive and well,” warning that a rigid exchange rate, capital controls and import bans could undermine President Muhammadu Buhari’s efforts to expand economic growth and fight corruption.

Buhari has rejected the idea of devaluing the naira.