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CBN may revisit forex policy to stimulate real sector again—Emefiele

Indication emerged yesterday that the nation’s grounding economy sector may soon get some reprieve as the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, promised to review some aspects of the bank’s flexible exchange rate policy. He said the target of the planned review is allow more manufacturers and other end users more access to foreign exchange, after nearly two years of embargo on importers of 41.

Speaking at the closing ceremony of the International Monetary Fund (IMF), and the World Bank Group summit in Washington DC, USA, after crucial sessions with foreign investors and other stakeholders he noted that though the flexible exchange rate policy was commended by several stakeholders at the meetings, there may be need still to review some aspects of it in the months ahead, to boost job creation and manufacturing capacity.

The policy change option was coming amidst huge job and capacity losses in the manufacturing and other critical sectors of the economy since its introduction on June 23, 2015.

Emefiele said “We heard the IMF Managing Director  Christine Lagarde, saying there is need to consider further liberalisation of the Naira, but like I have always said, the flexible exchange rate regime document that we have in place is a very sound document and truly speaking, I have not seen one person that has criticised it. But what we only have to talk about is fine-tuning few aspects of it, in terms of the implementation of the content of that document. That is why I said we would from time to time, continue to look at it. As we are looking at it, I repeat, we would see how we would continue to fine tune it, to the extent that whatever we are putting in place would be such that would benefit Nigerians, and improve their lives as well as the country.” He said

He added further that “it was important for Nigerians to underscore the significance of the various meetings the country’s delegation had with stakeholders from about 189 countries that added the World Bank Group meetings on the country’s economic outlooks and where it was heading to vis -a -vis, what is likely to be seen in the immediate, short term and the long run for the global economy.

“We held meetings with some groups of foreign investors who have shown interest in coming into Nigeria, but that they had few issues with some of our policies which they want us to address. They liked the fact that we adopted the flexible exchange rate regime, but there are some areas they want us to change, and like I always say, these policies are not cast on stones. We can always go back and look at them but what is most important in our mind as we are trying to look into these policies is that we will make sure that they are policies that have been done in the interest of Nigeria and Nigerians. What is important at this stage is how we protect Nigerians. We are committed to ensuring that we reduce the level of unemployment and  what we can do to ensure that manufacturers continue to improve their industrial capacities, as well as how to make it possible for them to get foreign exchange to run their factory.”

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