Banks’ determination of dollar exchange rates will boost capital inflows —IMF


The International Monetary Fund (IMF) has asked the Central Bank of Nigeria (CBN) to allow commercial banks to determine dollar buy-sale rates to boost foreign capital flows to the economy.

The Fund said a unified and market-clearing exchange rate remains critical to enhancing confidence of foreign investors in the economy.

The IMF, which made the disclosure in its 2022 Article IV Consultation concluding statement following an official staff visit to Nigeria, insisted that continued forex shortages, a stabilised exchange rate regime, rising inflation, limited debt servicing capacity, and administrative restrictions on current transactions fuel devaluation speculations.


Source: Nigerian Tribune