The governor of Central Bank of Nigeria (CBN), Godwin Emefiele said the period of the Covid-19 pandemic has been used by the apex bank to prove that anyone dealing in the parallel foreign exchange market is doing illegal business.
Emefiele made this ascertion yesterday while confirming the intention of the CBN to eliminate the multiple rates and unify the exchange rates regime in the country.
At the Investors Conference titled ‘Covid-19 Economic and Budgetary Update’ organized by Citibank Nigeria and held online. Emefiele disclosed that the various exchange rate regimes will be unified around the I&E window exchange rate.
According to him, “We will continue to pursue unification around the NAFEX Market”, noting that as at the end of 2019, Nigeria experienced a “relatively stable market because the NAFEX rate and rate that the Central Bank does transaction outside the NAFEX was close to themselves. At some point, the NAFEX rate was below the Central Bank rate”
Emefiele while speaking dismisses activities in the parallel market as illegal, adding that people patronizing the market are “doing dealings that are not recognized by authorities”
“The CBN has always maintained that the black market is not a good determinant of the value of the naira. You’ll find that people who are in a hurry and do not want to procure the kind of documentation required, will sometimes rush to those markets. But we have used the period of this pandemic to prove that anybody dealing in that market is dealing in an illegal business.” The CBN governor said.