IMF is partly responsible for uncertainty in the Nigerian foreign exchange market for the decline in transfers - emerging countries
IMF is partly responsible for uncertainty in the Nigerian foreign exchange market for the decline in transfers - emerging countries
The uncertainty on the Nigeria's foreign exchange market is jointly responsible for the break -in of cross -border transfers to the country, said an official of the International Monetary Fund (IMF).
COVID-19 Another contributor factor
according to A test report from the local news agency Punch said the civil servant ABEBELASIE on a question that during one virtual press conference was provided.
In his two-part answer to the question, Selassie initially recognizes the effects of global covid-19 pandemic to cross-border transfers in general. He then claims that the uncertainty about Nigeria's exchange rate has contributed to the decline in the transfers according to Nigeria by 28%."A second factor, I think, is the uncertainty on the foreign exchange market that prevailed in Nigeria last year. I don't think it was very beneficial for the transfers flowing as much as before or actually by the official financial sector", Selassie is cited.
Bitcoin.com-Nachrichten reported Before that, Nigeria's insistence had forced to avoid official transfer channels on an overvalued exchange rate. It is believed that the use of this overvalued stock exchange also contributed to the rise of cryptocurrency -based and other alternative transfer corridors.
The Forex market must be reformed
While the central bank of Nigeria (CBN) has tried since then, Back Due to the lost transfers by the "Naira for dollar" initiative, the IMF official insists that the inflows will only increase if the foreign exchange market is reformed. Selassie noticed:
As long as the reforms on the foreign exchange market that are necessary to ensure that the country has a uniform, uniform foreign exchange market can be carried out, this will help to reduce uncertainty and strengthen and enable more transfers flow and captured by the financial sector.
Only when the reforms - which make a very important contribution - will be recorded, will Nigeria have an increase in money transfers that are sent via formal channels, Selassie.
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