Nigeria's Central Bank Governor Emefiele to reconsider FX controls as demand drops

Godwin Emefiele, Governor, Central Bank of Nigeria (CBN). Credit:

Nigeria’s central bank Governor Godwin Emefiele said he will consider easing restrictions on currency trading in Africa’s biggest oil producer if demand for foreign exchange drops further.

The controls are necessary and are working to limit demand for dollars, Emefiele told delegates at a conference on Africa hosted by the Financial Times in London on Monday. The central bank had little choice in imposing the curbs in order to preserve foreign-currency reserves, he said.

“Once we have achieved a result we can allow ourselves to look at a freer market,” the governor said.

Emefiele imposed restrictions on trading and introduced bans on purchases of dollars by certain importers after the naira plunged to a record low in February following a drop in oil revenue.

Read more: Nigeria’s Emefiele to Reconsider FX Controls as Demand Drops – Bloomberg Business