The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has adopted a flexible exchange rate policy for the country, The Sun reports.
The CBN Governor, Mr Godwin Emefiele, disclosed this on Tuesday in Abuja while addressing newsmen on the outcome of the two-day meeting of MPC. He said with the directive, the apex bank would soon release a new guideline on the management of foreign exchange in the country. Emefiele said that when finally released, the apex bank would retain a small window for critical transactions. He cited the critical transactions as the importation of vital machinery for production and basic raw materials critical for manufacturing which by their nature could not be sourced locally.
The CBN had been under pressure over the last few months to either devalue the Naira or adopt a flexible exchange rate policy. Emefiele said following the recent depreciation of the country’s foreign exchange, time had now come for the bank to introduce greater flexibility in the management of foreign exchange. He said all the members of the committee voted unanimously to introduce greater flexibility in the inter-bank foreign exchange market structure and to retain a small window for critical transactions.