Nigeria’s flexible FX model to be ready in “short while” – bankers

ABUJA, June 9 (Reuters) – Details of Nigeria’s flexible currency model will be ready in a “short while”, the head of United Bank for Africa (UBA) said on Thursday after chief executives of the country’s lenders met with central bank officials.

Phillips Oduoza, CEO of UBA, told reporters after the bankers committee meeting that the central bank had received lots of input from stakeholders which was being studied with a view to creating a robust flexible exchange rate model.

“We want to make sure that we come up with a model that is very robust and comprehensive that would be able to address the major exchange rate issues that we have been dealing with,” Oduoza said.

“To this extent we have got a lot of inputs from various stakeholders. I believe that in a very short while the framework is going to be ready.”

The central bank announced last month plans to abandon the naira’s 15-month peg to the dollar, which has overvalued the Nigerian currency, harmed investments and caused the economy to contract.

However, the bank has yet to clarify how the new policy would work, spooking foreign investors, long worried about getting caught in the middle of a currency devaluation.

“We believe it is important to get it right … so you must exercise a little bit of patience but we are coming up with a framework that will address a lot of the issues that surround the foreign exchange in Nigeria,” he said. (Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Alexis Akwagyiram and Robin Pomeroy)

Source: Reuters