• Policy will create billions of inappropriate money
• Measure will worsen inflation
• Ask FG to unify rates, fix imbalances to achieve stability
The Central Bank of Nigeria (CBN) may have jettisoned the planned exchange rate convergence for quick fixes in the bid to stabilise the foreign exchange (forex) market.
This is coming about nine months after the Governor of the CBN, Godwin Emefiele, said the bank would continue to pursue FX rate unification programme around the Nigerian Autonomous Foreign Exchange Rate (NAFEX).
A source privy to the challenge in executing the exchange rate convergence told The Guardian yesterday the plan “is as good as dead” as the apex bank lacks the willpower to push through its plan.
Last year, The Guardian reported that the regulator faced overwhelming political pressure to end the multiple exchange rate regime, which experts said was partly responsible for the dwindling capital inflows.
Source: Guardian Newspaper