By Godson Ikiebey-
The Central Bank of Nigeria (CBN) has said that its made no change to its naira policies, after a revision on its website led some analysts to speculate that it was ending a system of multiple exchange rates.
Bloomberg reports that a spokesman for the central bank, Isaac Okorafor said that:
“Nothing has changed in Nigeria’s exchange-rate structure,” and that the naira’s value continues to be determined by trading in the Investors’ & Exporters’ FX Window.
The I&E FX window, also known as the Nafex window, was introduced in 2017 as Nigeria sought to attract capital inflows by offering investors a weaker and market-determined naira rate. The central bank pegs an official rate meant for government bodies and fuel importers at about 20% stronger than the market price.
The central bank’s homepage on Tuesday, June 11, 2019 stated that the official rate was “market-determined,” whereas it previously gave a value. The website reverted back to its original form on Wednesday, June 12, 2019
Central bank Governor Godwin Emefiele, who was re-appointed for a second five-year term last month, says the current system, which includes restrictions on imports, is the best way to diversify Nigeria’s oil-dependent economy and boost manufacturing.
Renaissance Capital said in an April note that Nigeria and Venezuela are about the only emerging markets in its coverage that have multiple exchange rates.