International Monetary Fund (IMF) on Wednesday asked Nigeria to simplify its complex foreign exchange system by removing multiple currency practices and unifying the exchange rate as quickly as possible just as it recommended an immediate removal of restrictions on foreign exchange access for 41 categories of goods.
This was among recommendation of the Executive Board of the International Monetary Fund (IMF) in the concluded Article IV consultation with Nigeria.
The Fund said that the complex foreign exchange system was used to reduce the impact of dollar shortages, which has left large gaps between official rates and various windows that certain groups can use to access other rates.
The report said the Fund recommends “removing multiple currency practices and unifying the exchange rate as quickly as possible”. It said the move would increase confidence, remove market distortions, and increase transparency.
“Exchange rate unification for all transactions and interventions should be supported by sound macroeconomic and structural policies. The unification would increase confidence, remove market distortions, and increase transparency, including in public financial reporting”, the report stated.