Emefiele: CBN only a player, we don’t control new FX regime

The Central Bank of Nigeria (CBN) says it is not interfering in the newly introduced flexible exchange regime aimed at ensuring foreign exchange stability as being speculated in some quarters.

Godwin Emefiele, the CBN Governor, stated this at a press conference in Lagos.

Emefiele said that the flexible exchange rate regime pricing was based on market forces of demand and supply.

“CBN has not been involved in interfering in the exchange rate regime. It is a flexible exchange rate regime and prices are determined based on market forces of demand and supply,” Emefiele said.

“It is important to correct that impression; it is not true that CBN is interfering in the flexible exchange rate regime.”

He emphasised that the apex bank remains a player in the market but does not interfere in the pricing, as it desires to see the return of other players to the market.

“We want a situation that over time CBN will stay back and more autonomous sources of generating foreign exchange will come to the market so that we will conserve our reserve,” he said.

He said the apex bank remains a stakeholder and a major player in the market presently.

On June 15, CBN released modalities for the long-awaited implementation of the flexible foreign exchange policy.

Emefiele announced the introduction of a two-way quote that means buyers and sellers would state prices and quantities they are willing to buy and sell.