CBN may unfold details of new forex regime today

The Central Bank of Nigeria (CBN) may today unfold the details of the operation of the new foreign exchange (forex) administration in the country.

The Corporate Affairs Department of the apex, via SMS (short message service), yesterday said its governor, Mr. Godwin Emefiele, would be addressing a press conference at the apex bank corporate office by 1:00 p.m.

Though the invitation was silent on the topic of the briefing, stakeholders believe it would dwell on the much-anticipated details of the new liberalisation policy of the forex regime, which the Monetary Policy Committee (MPC) of the apex bank introduced some two weeks ago without the operational guidelines.

Last Thursday at the bankers’ committee meeting, journalists were told that the much expected detailed operational template was delayed because the apex bank was trying to ensure that the best template is designed for the operation in the country.

Speaking on the new forex regime, the retiring Managing Director/Chief Executive Officer (CEO) of United Bank for Africa (UBA), Mr. Philip Udouza, said the promised frame-work for the operation of the flexible forex regime was still being formulated arising from inputs by banks in response to an exposure draft sent to them by the apex bank that would fit the Nigerian peculiar jurisdiction, warning that those speculating on the Naira would be the looser once the frame-work is concluded and released.

His words: “We also discussed the frame-work for flexible exchange rate. As you know, the Central Bank has been working on this for sometime. A lot of input has been received. As you know, some other jurisdictions have also implemented the flexible exchange rate model and some of them have done very well and the others are still fine-tuning what they have done.

“In the case of Nigeria, we want to make sure that we come up with a model that is very robust and very comprehensive that will be able to address the major exchange rate issues that we are dealing with. To this extent, we have got a lot of input from various stakeholders and these inputs are being distilled with a view to getting a robust flexible exchange rate model.’’

“I believe that in a very short while, the exchange rate will be readied. And once this happens, it is going to be made public. And we will adopt it and start working with it immediately. We believe that it is important for us to get it right and we don’t have to go back to the drawing board soon. You need to exercise a little patience.