The Federal Governor is facing fresh pressure from the International Monetary Fund, IMF, over its foreign exchange regime.
The IMF is calling for a unified exchange rate in addition to removal of subsidy payment on petrol.
During a virtual meeting with key government officials, the development agency, observed subsisting subsidy payments and called for an end to it.
The IMF expressed its concern with the resurgence of fuel subsidies and recommended maintaining the momentum toward fully unifying all exchange rate windows and establishing a market-clearing exchange rate.
On the country’s operating exchange rate, IMF, said current system creates uncertainties for the private sector because of multiple exchange rates and non-transparent rules for foreign exchange allocation and advised that unifying the various rates into one market-clearing rate would establish policy credibility.
‘‘Sustained premiums in the parallel market and unmet foreign exchange demand indicate the need for further adjustment in the exchange rate to reduce the gap between supply and demand. An appropriately valued exchange rate and a clear exchange rate policy would also help instil confidence and private sector-led recovery.
‘‘Policy clarity is also important to attract larger capital inflows, including foreign direct investments; which have dropped significantly in recent years and successful diversification,’‘ IMF posited.