Despite persistent pressure from the International Monetary Fund (IMF) and other institutions on Nigeria to devalue the naira, by floating it, the apex bank says it is not ready to buy the idea.
The bank stated that it is achieving the deserved results in its current weekly intervention in the foreign exchange market, where it pumps in an average of $100 million.
It said the policy has seen the naira regain some steam over its dollar-rate exchange.
Isaac Okoroafor, the CBN spokesman, told newsmen on Friday that experiences of other developing countries, especially, Egypt, that have, floated their currencies, has shown that following the same path for naira would put Nigerian economy in more stress .
“There are facts proving that floating of currencies by the developing countries as had been done by some have not in anyway led them out of the woods.
“If the experience of Egypt, which recently adopted the policy, is anything to go by, such policy presents poor results.
“For Egypt, with its level of infrastructure and foreign exchange receipt of $12 billion could face such issues that are unanticipated, then CBN is right in sticking to its decisions not to float the naira”.
He also said that the apex bank would not relent in its policy of sanctioning banks that are found wanting in sticking to the rules governing forex.
On the fate of two directors of CBN recently indicted for abuse of dollars allegedly diverted from the market, the spokesman declined commenting on that, adding that appropriate offices were handling all such related matters.
But the CBN stance seemed to have been ironically supported by the IMF Managing Director, Christine Lagarde, recently.
the IMF boss at the just concluded IMF/World Bank Spring meeting in Washington, USA, said on Thursday, that Egypt still had a long way to go after it had devalued its currency, the Egyptian Pounds.
Lagarde had called the Egyptian policy makers and its economic managers to do more on structural reforms for the country to enjoy some levels of economic stability.
RipplesNigeria ….without borders, without fears