There have been complaints from several quarters that Nigeria’s dollar reserves are depleting.

But if you ask the governor of the Central Bank of Nigeria, Godwin Emefiele, he would rather have a dwindling reserve than an unstable naira.

Emefiele said that maintaining stable exchange rate to avoid depreciation of the naira is better than building foreign reserve buffers.

Emefiele told journalists on Sunday that this was part of the outcome of the Nigerian delegation’s meetings with investors and institutions at the International Monetary Fund and World Bank Group Annual Meetings in Bali, Indonesia.

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He said that all frontiers and developing markets had suffered not just depreciation but had also lost reserves.

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The News Agency of Nigeria quoted Emefiele as saying: “We are very conscious of the need to build buffers; but unfortunately, I must say that we are in the period where it will be difficult to talk about building reserve buffers.

“We can only build reserve buffers if we want to hold on to the reserves and then allow the currency to go, and wherever it goes is something else.

“So, it is a choice we have to make and at this time, the choice for Nigeria is to maintain a stable exchange rate so that businesses can plan, and we do not create problems in the banking system.”

According to him, like other emerging markets, Nigeria has also lost reserves but only marginally because it has managed to sustain stability in its foreign exchange market.

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