The CBN governor, Godwin Emefiele has announced a new policy that would guarantee more flexibility in the management of the foreign exchange market. This he announced at the end of the recently held Monetary Policy
Committee meeting in Abuja.
He said the new policy would guarantee improved access to foreign exchange for businesses to boost the economy and reverse “imminent recession”.
Also in the offing, the new policy would not involve the return of the bureau de change operators, as they would continue to source their foreign exchange from the autonomous market.
Recent data from the National Bureau of Statistics indicated that the economy contracted to about 0.36 per cent in the first quarter of the year, the first time in over a decade.
This has led analysts to form the opinion that the government is planning to officially devalue the naira from its current 197 rate to the dollar, in a desperate move to strengthen the ailing economy.
During the meeting however, monetary policy rate, MPR was retained at 12 per cent; Cash Reserve Ratio, CRR at 22.5 per cent and liquidity ratio at 30 per cent.
A country is said to be in recession when its economy shrinks in two consecutive quarters. What will be the outcome of Q2?
Details of the new policy would be released in the coming days.