The Lagos Chamber of Commerce and Industry has commended the decision of the Central Bank of Nigeria, at its recent Monetary Policy Committee meeting, to adopt a flexible exchange rate regime.
The Chamber expressed optimism that the policy choice would bring about improvement in the efficiency of foreign exchange allocation in the economy, and also boost investors’ confidence as well as attract greater forex inflows to the economy.
It also welcomed the decision of the apex bank to refrain from further tightening of monetary policy at this time.
“The current context is that economy has been declining. The Gross Domestic Product (GDP) has contracted for the first time in twelve years; unemployment is on the rise; manufacturing capacity utilization has been weakening and investors’ confidence has been at its lowest ebb. The decision not to
tighten monetary policy is therefore appropriate”, it said.
The Chamber, however, urged the Central bank to give due consideration to the need for clarity on what the apex bank describes as a special window for critical transactions for which preferential rates will apply.
It wants a revisit of the list of items that have been placed on the exclusion list of the forex market as it articulates the framework for the new forex regime.