IMF backs CBN’s exchange rate unification policy

The International Monetary Fund (IMF) on Friday gave its backing to the Central Bank of Nigeria (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 rate.

The IMF said it stands by and supports the implementation of the policy.

In a statement, IMF Resident Representative, Nigeria, Ari Aisen, 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.”

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With the policy, all applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance, and SMEs would continue to be processed through the I&E window.

A circular to authorised dealers signed by CBN Director, Financial Markets, Angela Sere-Ejembi, said all exchange rate segmentation is abolished with immediate effect.

She said the operational changes to the foreign exchange market also include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.

“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,” she said.