International Monetary Fund (IMF) has backed the Central Bank of Nigeria’s (CBN’s) exchange rate unification policy.
The policy, which collapsed all exchange rates into the Investors and Exporters (I&E) window, allows market forces to determine exchange rates.
The IMF, on Friday, said it stood by and supported the implementation of the policy.
The IMF Resident Representative, Nigeria, Ari Aisen, in a statement, said, “The Fund greatly welcomes the authorities’ decision to introduce a unified market-reflective exchange rate regime in line with our long-standing recommendations. We stand ready to support the new administration in its implementation of FX reforms.”
This means applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance, and SMEs would continue to be processed through the I&E window.
Meanwhile, a circular to authorised dealers signed by CBN Director, Financial Markets, Angela Sere-Ejembi, said all exchange rates segmentation were abolished with immediate effect.
Sere-Ejembi said the operational changes to the foreign exchange market also included the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
She said, “Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.”
Source: The Conclave
