International Monetary Fund Backs Nigeria’s Exchange Rate Unification Policy

In a show of support, the International Monetary Fund (IMF) has given its backing to the Central Bank of Nigeria (CBN) regarding its exchange rate unification policy. The policy, which consolidates all exchange rates into the Investors and Exporters (I&E) window, aims to allow market forces to determine the country’s exchange rate.

According to the IMF Resident Representative in Nigeria, Ari Aisen, the organization wholeheartedly welcomes the government’s decision to implement a unified market-reflective exchange rate regime, aligning with the IMF’s longstanding recommendations. The IMF has expressed its readiness to assist the new administration in executing foreign exchange (FX) reforms.

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.

According to her

Under the new policy, various transactions, including medical expenses, school fees, Business Travel Allowance/Personal Travel Allowance, and Small and Medium-sized Enterprises (SMEs), will continue to be processed through the I&E window. The Central Bank of Nigeria, through a circular signed by the Director of Financial Markets, Angela Sere-Ejembi, announced the immediate abolition of all exchange rate segmentation. Additionally, the “Willing Buyer, Willing Seller” model will be reintroduced at the I&E Window, with all eligible transactions permitted to access foreign exchange through this window.

The exchange rate unification policy marks a significant step towards a more transparent and market-driven foreign exchange system in Nigeria, and the IMF’s endorsement further strengthens its implementation and provides support for the government’s FX reforms.

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 continued
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