The Central Bank of Nigeria (CBN)’s strategy of unifying exchange rates received support from the International Monetary Support on Friday.
The Investors and Exporters (I&E) window was created as a result of a policy that collapsed all currency rates, allowing market forces to determine exchange prices.
The IMF declared that it adheres to the policy and supports its execution.
In a statement, IMF Resident Representative in 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.”
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 are 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
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