The International Monetary Fund (IMF) has said that the Foreign exchange reforms introduced by the Central Bank of Nigeria (CBN) have positively impacted the economy as investor confidence has started returning to the country.
Mr. Amine Mati, IMF Mission Chief to Nigeria, said this at the Moody’s Investors Service 4th Annual West Africa Summit: “Nigeria’s Recovery: Slow and Sturdy,” in Lagos on Wednesday.
According to him, initiatives such as the Investors’ and Exporters’ (I&E) forex window have provided some confidence for investors keen on Nigeria who are now staging a comeback.
He said: “There is returning investor confidence in the country; the number of investors that keep coming to my office keeps rising. Last year, the country raised $4.8 billion including the Diaspora Bond and the Eurobond issuance. This year, the country has raised $2.5 billion from the Eurobond market.
“Last year, foreign holdings of local debt was about $4 billion, as of the end of march, foreign holdings of local debt was $16 billion, a lot of interest. Same in the equities market, there was increase in the equities market in the first nine months of 2017,” he added.
He further pointed out that another positive development in the Nigerian economy is the stability in the exchange rate, noting that whereas in February last year, the country had an exchange rate of N520 to a dollar (parallel market) and N305 to a dollar (official market) with other windows having different rates, there was now some convergence in rates.