BREAKING: IMF endorses CBN’s exchange rate unification policy
The International Monetary Fund (IMF) has applauded the decision of the Central Bank of Nigeria (CBN) to unify the country’s exchange rate regimes.
The IMF in a statement it issued on Friday offered to support the CBN and federal government in their decision to unify the exchange rates.
IMF Resident Representative in Nigeria, Ari Aisen in the 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.”
The CBN on Wednesday collapsed all exchange rates into the Investors and Exporters (I&E) window, thereby allowing market forces to determine exchange rate.
According to the CBN, all applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance, and SMEs would continue to be processed through the I&E window.
The Director, Financial Markets of the CBN Angela Sere-Ejembi in a press statement announced the abolition of all exchange rate segmentation with immediate effect.
By unifying all exchange rates, the CBN has re-introduced the “Willing Buyer, Willing Seller” model at the I&E Window from where all eligible transactions are permitted to access foreign exchange.
