The Nigerian foreign exchange market has gone through series of reforms from the introduction of the Second-tier Foreign Exchange Market (SFEM) in 1986 to the introduction of the autonomous foreign exchange market in 1995 and the Interbank foreign exchange market in 1999. However, sustained liquidity pressures have seen to the existence of a thriving parallel market with significant premiums to the official rate. In this report, we reviewed the impact of the CBN’s regular intervention in the foreign exchange market, the impact on reserves and supported the analysis with our opinion on finding a balance.
Click on the link below to access the full report:
Economic Commentary- The FX Intervention Policy and Foreign Reserves
