More ‘flexible’ Nigerian exchange rate regime met with cautious optimism
Central bank announces intention to move to more flexible regime, though exact parameters not yet announced
The governor of the Central Bank of Nigeria has announced that the bank will adopt a more "flexible" exchange rate framework; loosening the currency's peg to the dollar and relieving pressure on diminishing foreign exchange reserves.
After the monetary policy committee (MPC) held its policy rate at 12% on May 24, Godwin Emefiele stressed the MPC's view the economy should "aggressively earn and build up its stock of foreign reserves in order to avoid distortions when faced with severe shocks".
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