ADVERTISEMENT
Nigeria’s Central Bank infamous FX policy achieving results
The central bank feels gratified to have seen a movement from as high as over N500/$1 and converging heavily southward to its present value.
Godwin Emefiele, Governor of Nigeria's Central Bank reiterated the bank's commitment towards sustaining its FX intervention programme.
According to information from various FX trading platforms, the Bureau De Change opened the market at N370/$1 while the interbank rate was N316/$1. This portraits a close of margin to 23%.
It would be recalled that Central Bank of Nigeria (CBN) adopted a direct intervention into the FX markets in the country since February 2017. The bank also created different Fx windows to meet the Forex needs of businessman, investors, exporters and other auxiliary users.
According to the Acting Director of Corporate Communications at the CBN, Isaac Okorafor, the bank also injected about $254.3 million into the retail segment of the FX market.
ADVERTISEMENT
The Governor of the CBN, Mr Godwin Emefiele also revealed during an interview on Sunday, July 9, 2017, that the bank home-grown policies have able to address economic challenges being faced by the country, especially the FX issue.
“What we are doing is that we are developing home-grown solutions and I truly would not like to bring down any other country because they are adopting their own solutions.
“A couple of people have said why didn’t we adopt the Egypt model and I said they should leave us to adopt our own solutions and our own Nigerian options because we have our own peculiarities,"Emefiele stated.
These interventions have led to the appreciation of Nigeria against major currencies – Dollars, Euro and Pounds, in the FX market. The Investors’ & Exporters’ FX (IEFX) window has also received the attention of various foreign portfolio investors during the recent FMDQ OTC London meeting.
ADVERTISEMENT
“We have opened the Forex market up for more and more people who are interested. That was why we introduced the I & E window. We said if you want Forex you can go to that market and buy it once it fits the pricing structure of the goods or whatever you want to do.”
Apart from the close of the gap between the official and unofficial currency trading markets, the Nigerian Stock Exchange (NSE) has also saw the return of many FPIs that left during the beginning of the year.
Emefiele also hinted that the CBN is considering achieving a single digit inflation as a major policy going forward.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
ADVERTISEMENT