The Central Bank of Nigeria has raised concerns that the nation’s foreign exchange reserves which is USD35 billion can only finance seven months imports.
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In the apex bank’s review outlook released recently, CBN explained that this why it implemented the demand management framework to bolster production of Nigerian goods as way of conserving external reserves.
The bank however said it has continued to allow gradual liberalisation of the foreign exchange market in order to smoothen exchange rate volatility and mitigate the impact which rapid changes in the exchange rate could have on key macro-economic variables.
According to the bank, these measures have been part of international best practices in countries where managed float arrangements were in operation.
The bank assured however that measures were being taken by the authorities to improve the nation’s non-oil exports and other sources of foreign exchange.