The Investors’ and Exporters’ (I&E) Forex window of the Central Bank of Nigeria (CBN) has attracted over $60 billion to the Nigerian economy.
Governor, CBN, Godwin Emefiele, disclosed that the 29 months operations of the I&E forex window had helped stabilize the volatility of the Naira against other currencies.
Emefiele added that the willing-buyer, willing-seller window would continue to allow foreign investors to bring in more foreign exchange.
“With a moderated inflation rate, positive Gross Domestic Product (GDP) growth and improvements in our external reserves position, the naira-dollar exchange rate at the I&E Forex window has remained stable for the past 29 months at N360 – $1 and we have witnessed significant convergence in the exchange rate across the various market windows,” Emefiele said.
According to analysts, prior to the introduction of the I&E Forex window, the foreign exchange market was in commotion, The Nation reported. But in a dramatic turn of events, the severe scarcity of forex to businesses and individuals was overturned with banks and Bureaux de Change (BDCs) now badly looking for forex buyers.
The CBN, in order to defend the naira against exchange rate fluctuations and boost liquidity in the foreign exchange market, injected on a weekly basis the sum of $10.97 billion between January and October in 2018.
The injected funds were provided to authorized dealers in the wholesale sector, businesses in the agriculture and manufacturing sectors, individuals paying tuition and medical bills and Small and Medium-scale business.
[READ MORE: Rapid increase in food prices temporary – Emefiele)
Other measures put in place by the CBN to stabilize the naira include restricting access to foreign exchange for 41 items, and the launch of the first Naira-Settled Over-the-Counter (OTC) Forex Futures Market (FFM) on FMDQ OTC Securities Exchange
Meanwhile, before the introduction of the I&E forex window and interventions by the CBN, the Nigerian economy was in recession, equities and forex market in shambles and inflation at its highest.