Business News

CBN working with IMF to create framework for addressing excess volatility 

The Central Bank of Nigeria (CBN) is working with the International Monetary Fund (IMF) to establish a comprehensive framework to address volatility in the foreign exchange market.

Muhammad Sani Abdullahi, the CBN’s Deputy Governor of Economic Policy, said this during a crucial strategic dialogue session with international investors. 

In a partnership with the CBN, this online engagement was orchestrated by the Nigerian Exchange Group (NGX).

It was further supported by various global financial titans, including Standard Bank, Citi Bank, J.P. Morgan, and Standard Chartered. It was earlier scheduled to be held on Wednesday but was moved to Thursday. 

Abdullahi said: 

Abdullahi expressed the central bank’s unwavering commitment to ensuring the utmost stability across all foreign exchange (FX) market segments. 

He highlighted the CBN’s proactive approach towards identifying and mitigating instances of undue volatility, whether emanating from the banking sector or the Bureau De Change (BDC) segment. As Abdullahi pointed out, the primary goal is not to manipulate market prices but to establish and maintain stability across the board. 

He said: 

Shifting focus to the proposed guidelines for BDC operations, Abdullahi provided insights into the exposure draft aimed at overhauling this crucial sector.

The draft’s primary aim is to align BDC activities more closely with global Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, bolster reporting mechanisms, integrate advanced technology, and guarantee that this sector delivers superior, streamlined, and well-regulated services to its diverse clientele. 

He said: 

He added that a part of the plan is to remove Nigeria from the Financial Action Task Force’s (FATF) grey list.