CBN to eliminate multiple exchange rates regime- Emefiele

CBN moves to capture 200,000 maize farmers in Nigeria
Godwin Emefiele, CBN Governor.

By Babajide Komolafe

The Central Bank of Nigeria (CBN) yesterday stated that it’s going to remove the a number of alternate charges regime within the nation.

CBN Governor, Mr. Godwin Emefiele disclosed this yesterday whereas confirming plans for unification of alternate charges.

The plan to remove the a number of alternate charge regime was equally indicated by the Minister of Finance final week in a doc which acknowledged that the federal government over the following 12 months would search to unify the alternate charges to generate extra naira from its overseas inflows and handle the speed in a sustainable method.

The a number of alternate charge regime led to the emergence of various alternate charges within the three main segments of the overseas alternate market, specifically the official market, the Investors and Exporters (I&E) window also referred to as NAFEX, and the parallel market.

The alternate charges within the three main segments as on the shut of buying and selling yesterday are: Official market-N361 per greenback; I&E window-N386.63 per greenback; parallel market-N457.5 per greenback.

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However, Emefiele, whereas talking at an Investors Conference with the Federal Government of Nigeria organized by CitiBank, disclosed that the varied alternate charges can be unified across the I&E window (NAFEX) alternate charge. The convention which was held on-line was titled Covid-19. Economic and Budgetary Update.

“We will continue to pursue unification around the NAFEX Market”, Emefiele stated, noting that as on the finish of 2019, Nigeria skilled 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 me below the Central Bank rate”

The CBN Governor dismissed actions within the parallel market as unlawful enterprise, including that folks patronizing the market are “doing dealings that are not recognized by authorities”

He stated: “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.”

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