Given the structure of our economy, CBN’s attention is primary focused on three factors, including; • One, rising trade tensions between the US and China could taper global growth, and by extension demand for commodities such as crude oil • Second, how to ensure that Nigeria’s economy is insulated from the adverse consequences facing emerging and frontier markets, due to rising rates in the United States.
Since these non-economic factors were removed during 1993 and 1994, following the major social and political reforms in our country, justification for the retention of the exchange controls also disappeared. In the new situation, the retention of exchange controls became counter-productive and, in a more open and freer economic environment, created undesirable distortions in the allocation of resources.