Nigeria’s multiple exchange rate policy worries WTO – Okonjo- Iweala

Nigeria’s Central Bank had March last year said
that it will migrate to a single exchange rate for
the naira by collapsing the multiple exchange
rate policy that determined the value for the
local currency.
Responding to the question if the WTO was
concerned with the multiple exchange rate
regime in the country, Okonjo-Iweala, who was
the former Nigerian Minister of Finance and
Coordinating Minister for the Economy, said:
‘Yes. WTO has one of the agreements of the
balance of payments, and Nigeria certainly
invoked this to be able to conserve foreign
exchange. Its a book list article. But some other
members have brought a complaint against us
(Nigeria) that we shouldn’t have used this article
in that way. So, yes, the WTO is concerned
about foreign exchange, the way we manage it,
the way we use it and how we use it to support
manufacturing or imports and exports in our
‘And I think that we had that discussion with
them, they complaints about the exchange rate
regime and we (Nigeria) try to explain. I
shouldn’t say we because I’m now DG WTO, it is
for Nigeria’s representative to explain to the
WTO, to those members complaining why we’re
doing this. But eventually, I think having a strong
exchange rate and being able to phase out of
this, I think we’ll be heading in that direction.
We’re also going to see the governor of the
central bank, and will undoubtedly discuss some
of these issues.’

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