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Bullion

Keywords

Nigeria, Currency convertibility, Exchange rate, Price control, Foreign exchange reserves.

Abstract

The rapidly unfolding development's in the world economy in recent times, have led to resurgent calls for moves towards currency convertibility (basically, the unrestricted use of a country's currency for international transactions, allowing it to be freely exchanged for foreign currencies) as a part of the process of integration into the world market economy. This paper seeks to discuss the issues and prospects of naira convertibility. The paper is divided into four parts. Part 1 discusses the various concepts of and preconditions for currency convertibility. Part II, evaluates Nigeria's economic conditions in relation to the issue of convertibility. In Part III, implications of a convertible naira on the national economy are examined, while summary and some concluding remarks are contained in part IV.

Author Bio

The authors are staff of Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

No 3

Volume

Vol. 19

COinS
 
 

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