The Central Bank of Nigeria (CBN) said the Investors and Exporters (I&E) Forex Window initiative has attracted over $50 billion in investment in the past three years.
CBN Governor Godwin Emefiele announced the news in Abuja yesterday.
He was 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 also explained why the apex bank introduced multiple exchange rate regimes.
According to Emefiele, “the CBN introduced the Investors and Exporters (I&E) Forex window to enable investors and exporters to purchase and sell forex at the prevailing market rate. This has attracted over US$50 billion in investment to the country within three years”.
Explaining the rationale behind the operation of different exchange rate regimes, Emefiele stated: “Our choice of exchange rate regime(s) has at all times been determined by the prevailing economic fundamentals.
“It is not uncommon that the dynamics of the external and domestic economy lead to a change in regime. Indeed, global economic and financial crisis, pandemics, currency crisis, commodity supply shocks and geopolitical tensions to name a few have determined the choice of our exchange rate regime.
“For emerging developing economies like Nigeria where the demand for imports remains high, an appropriate exchange rate regime is required to safeguard capital outflow and ring-fence the external reserves.”
