Business

Nigeria Exchange Rate Policies Discouraging to Investors- World Bank

World Bank revealed in a recent statement that Nigeria Exchange Rate Policies discourage investors hoping to carry out transactions in the country.

The bank also noted that the management policies might partly be responsible for triggering the continuous inflation rates as contained in its latest ‘Nigeria Development Update,’ November edition.

Pointing out the role of the Central Bank of Nigeria, CBN, in stabilizing the exchange rate, WorldBank explained that it had constantly been raising the nominal official exchange rate by placing intense pressure on the naira.

The world apex bank hinted that Nigeria’s central bank’s foreign exchange management system was too stiff, adding that the concept is responsible for the inflation irregularities encountered in the country.

The bank further revealed that the Exchange rate stability is a crucial CBN policy target, adding that it will take proper management of the demand for foreign exchange and the ability to reduce the FX supply to the market if Nigeria hopes to preserve its external reserves.

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