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Training on Exchange Rate Policies underway in Abuja

The Central Bank of Nigeria says the country’s choice of exchange rate regime is determined by the prevailing economic fundamentals.

For the current foreign exchange regime known as Managed Float system, the apex bank says global economic and financial crisis, pandemics, currency crisis, commodity supply shocks and geopolitical tensions have determined the choice of the exchange rate regime.

The Governor of the Bank, Mr. Godwin Emefiele stated this in Abuja in a message to the opening ceremony on a regional course on Exchange Rate Regimes and Policies organized by the West African Institute for Financial and Economic Management, WAIFEM.

Mr. Emefiele who was represented by the Deputy Director, Monetary Policy Department, Mrs. Omolara Duke said while more developed economies tend to float their currencies, developing ones such as Nigeria are more protective to prevent a currency crisis.

The Governor said WAIFEM will continue to be a trusted ally to build the capacity of technical staff and policy-makers in the ECOWAS sub-region to promote sound macroeconomic management.

The Director General of WAIFEM, Dr. Musa Baba explained that exchange rate was critical to economies as it affects cross border economic transactions, investment, finance and migration for any nation, especially in a globalized world.

He said the essence of the course was to expose participants to different exchange rate regimes and their application as well as impact on a given economy.

Dr. Yusuf Baba said different exchange rates have their pros and cons as well as intricacies and require knowledge and skillful handling to navigate.

Participants at the training were drawn from Nigeria, Sierra-Leone, Gambia, Ghana and Liberia.

Reporting by Biodun Dare, editing by Daniel Adejo