The International Monetary Fund (IMF) has thrown its weight behind the Central Bank of Nigeria (CBN) as it takes steps to unify the country’s foreign exchange market. This move comes in response to recent operational changes announced by the CBN regarding the forex market.
As reported by DAILY POST, the CBN directed Deposit Money Banks to remove the rate cap on the naira at the official Investors’ and Exporters’ Windows of the foreign exchange market. This decision has already had an impact on the currency, with the naira experiencing depreciation against the US dollar, which now exchanges at 588.5 according to CBN data.
In a statement released on Friday, Ari Aisen, the Resident Representative for Nigeria at the IMF, expressed the organization’s support for the federal government and its efforts to mitigate the economic effects of implementing forex reforms. The IMF lauded the decision to introduce a unified market-reflective exchange rate regime, which aligns with their long-standing recommendations. Furthermore, the IMF pledged its readiness to assist the new administration in implementing these necessary FX reforms.
This endorsement from the IMF carries weight and signifies international recognition of the CBN’s move toward a more unified and market-driven forex system. With the support and guidance of the IMF, the Nigerian government can navigate the economic challenges associated with these reforms and work towards a more stable and efficient foreign exchange market.
