WE HAVE MADE NO CHANGES TO OUR FOREIGN EXCHANGE POLICY- CBN

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.

(Bloomberg)

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