The International Monetary Fund (IMF) on Friday supported the policy of the Central Bank of Nigeria (CBN) to unify the exchange rate.
The policy collapses all exchange rates into the Investor and Exporter (I&E) window, allowing market forces to determine the exchange rate.
The IMF said it stands by and supports the implementation of the policy.
In a statement, IMF Resident Representative in Nigeria, Ari Aisen, said: “The Fund warmly welcomes the authorities’ decision to introduce a unified market-reflecting exchange rate regime, in line with our longstanding recommendations.
We are ready to support the new administration in the implementation of currency reforms.”
With this policy, all medical, tuition, business travel allowance/personal travel allowance, and SME applications would continue to be processed through the I&E window.
A circular to authorized dealers signed by the CBN Director, Financial Markets, Angela Seri-Ejembe, said all exchange rate distributions have been discontinued with immediate effect.
Operational changes in the forex market also include the re-introduction of the “willing buyer, willing seller” model in the I&E window, he added.
“The activities in this window are governed by the existing circular establishing the window dated 21 April 2017 with reference number FMD/DIR/CIR/GEN/08/007.
All eligible transactions are permitted using foreign exchange on this window,” he said.