The Central Bank of Nigeria Governor, Godwin Emefiele in an address on Tuesday after the end of the two day Monetary policy committee, MPC meeting, in Abuja said that the CBN has adopted a flexible Monetary policy.
All nine members of the, MPC voted to hold and introduce greater flexibility in managing the foreign exchange rate. "Details of the operation of the market would be released at the appropriate time" he said.
The Governor said the CBN left interest rate unchanged at 12 percent; Cash Reserve Ratio, 22.5 percent; and Liquidity Ratio, 30 percent.
He equally warned that Nigeria might face imminent recession. The Nigerian economy contracted by -4% in the first quarter. This is first economic contraction in 25 years.
Nigeria foreign reserves dips to $26.6bn. In the face of severe pressure on external reserves and foreign exchange supply crises, the CBN abandoned its fixed rate policy in favour of a flexible and multiple market model which implied a floating exchange rate regime. The CBN had annulled the official exchange rate regime of N197/dollar. He however, said the CBN would retain a special window to fund critical transactions in foreign exchange, which would attract a concessionary rate. By this development, the Interbank foreign exchange market would be revitalised and the Bureaux de Change, BDC, would continue with their operations, thus creating multiple exchange windows.
No comments:
Post a Comment