CBN Says Multiple Foreign-Exchange Windows Cost Nigeria 3% of GDP
The Central Bank of Nigeria said the country’s former multiple foreign-exchange windows cost about 3% of gross domestic product. It said earlier reforms had improved macroeconomic conditions and described its latest policy reset as an effort to improve monetary-policy operations while retaining an inflation focus.
The Central Bank of Nigeria has said the country’s previous system of multiple foreign-exchange windows cost the economy 3% of gross domestic product. Premium Times reported that the CBN made the assessment while discussing its latest policy reset. The central bank said earlier reforms had improved Nigeria’s macroeconomic conditions.
According to the report, the latest reset is intended to strengthen the way monetary policy operates. The CBN also said the changes would not mean abandoning its focus on inflation. The supplied material does not identify the separate foreign-exchange windows, explain how the 3% estimate was calculated, or give a timeframe for the economic loss.
It also does not specify the individual measures included in the latest reset. The central bank’s position links the former exchange-rate structure with an economic cost while presenting previous reforms as having produced improvements. Its stated objective for the new policy direction is to improve monetary-policy operations and continue addressing inflation.
No response from other officials, businesses or economists is included in the supplied report. Further details about the effects of the reforms, the exchange-rate regime or the CBN’s implementation timetable are not available.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.