The Governor of the Central Bank Of Nigeria (CBN), Godwin Emefiele, on Saturday said that Nigeria canâ€™t afford to operate a floated exchange rate system despite advice from the World Bank and other global financial institutions.
The CBN Governor disclosed this while speaking at the IMF/World Bank Spring Meetings in Washington DC, United States.
Emefiele had stated this while reacting to the call by the World Bank Group President, David Malpass calling on Nigeria to stick to a single exchange rate policy.
According to the CBN Governor, different countries are faced with diverse economic issues and would tackle them differently.
Â â€œBoth the IMF and World Bank are our prime development banks, and we have received support from them at different times in resolving some of our economic challenges, particularly bordering on finance.
â€œNigeriaâ€™s situation is very peculiar and that is why we have continued to engage the IMF and World Bank to show understanding of our local problems.
â€œYes, they want us to freely float the exchange rate and you do know that this will have some impact on the exchange rate itself in the sense that when you allow that to happen, you will have some uncontrollable spiral in the countryâ€™s exchange rate.â€