Banking Sector Committed to Expanding Foreign Exchange Supply, says CBN Governor (

Banking Sector Committed to Expanding Foreign Exchange Supply, says CBN Governor


The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has expressed her concern about the potential consequences of retail central bank digital currencies (CBDCs).

Speaking at the Milken Institutes 2023 Global Conference on May 1st, Georgieva cautioned that retail CBDCs have far more room for error than wholesale CBDCs.

She explained that wholesale CBDCs, which are designed to allow financial institutions to carry reserve deposits with a central bank, can be put in place with fairly little space for undesirable surprises.

However, retail CBDCs, which are statebacked virtual currencies issued by central banks for use by consumers and businesses, completely transform the financial system in a way that we dont quite know what consequences it could bring.


According to a report by Cointelegraph, the IMF is collaborating with around 50 countries to ensure best practices are adopted for CBDCs, which Georgieva expects will have a huge influence on banks and economies in the future.

The caution from the IMF comes as Nigeria became one of the first countries in the world to launch a public CBDC, called the eNaira, on October 25, 2021.

The Central Bank of Nigeria (CBN) defines the eNaira as a digital currency denominated in Naira that serves as a medium of exchange and a store of value.

During the launch, the Governor of the Central Bank of Nigeria, Godwin Emefiele, stated that the eNaira was presented after four years of research by the apex bank.

The CBN governor claimed that 33 banks were successfully integrated into the eNaira network, with the apex bank minting N500m for the currencys inauguration.

As of December 2021, the eNaira consumer wallet had over 583,000 downloads, while the merchant wallet had 83,000 downloads from over 160 countries.

On Tuesday, the CBN governor disclosed that eNaira transactions hit about N1.4m as of March 31, 2023.

The launch of eNaira and the increasing interest from other countries in developing their own CBDCs have raised concerns about the potential risks and consequences of such currencies.

The IMFs caution highlights the need for caution and careful consideration in the development and implementation of CBDCs to mitigate any negative impacts they may have on the global financial system.


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