Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), said the Investors and Exporters (I&E) window had attracted more than $50 billion in investment to the country in three years.
Emefiele said so on Monday at the opening of the regional course on Exchange Rate Regimes and Policies, organized by the West African Institute for Financial and Economic Management (WAIFEM).
He was represented at the event by Omolara Duke, deputy director of the monetary policy department of the apex bank.
The I&E FX window is the market segment for investors, exporters and end users that allows forex trading at determined exchange rates based on market circumstances.
Currently, naira is trading at N415.64/$ to the I&E window.
“The CBN has introduced the Investors and Exporters (I&E) Forex Window to allow investors and exporters to buy and sell currencies at the prevailing market rate,” he said.
“It has attracted more than $50 billion in investment to the country in three years.”
Explaining the rationale for multiple exchange rates, Emefiele said the bank’s decision was always determined by prevailing economic fundamentals.
He added that it was not uncommon for the dynamics of the external and internal economy to lead to regime change.
“Indeed, the global economic and financial crisis, pandemics, currency crisis, commodity supply shocks and geopolitical tensions, to name a few, have determined the choice of our rate regime. change,” said Emefiele.
“For emerging developing economies like Nigeria, where import demand remains high, an appropriate exchange rate regime is needed to preserve capital outflows and protect external reserves.”
“The objective of exchange rate management by the Central Bank of Nigeria is to enable the market system to determine the exchange rate parity efficiently, free from the activities of speculators and rent seekers.”
Emefiele said the objectives of the CBN’s exchange rate policy in Nigeria include preserving the value of the naira, maintaining a favorable external reserve position and ensuring external balance without compromising the need for internal balance and the overall objective of macroeconomic stability.