The Central Bank of Nigeria (CBN) on Tuesday flawed the position of parallel market rates protagonists on real value of the nation’s currency, insisting that their pressure to devalue the Naira is not logical.
The CBN Governor, Mr. Godwin Emefiele, made this vow at the end of the 2020 Monetary Policy Committee (MPC) meeting, in Abuja.
Emefiele, while briefing the media on the key decisions taken at the meeting, disclosed that the committee members agreed that Monetary Policy Rate (MPR) at 11.5 per cent and other parameters should be retained.
Specifically, the governor described the clamour by even those who should know better for the use of parallel market to determine the exchange rate of the Naira against international currencies as unfortunate in view of the fact that the black market accounts for a mere five percent of the foreign exchange market.
The governor said: “It is unfair that even analysts who should know are using parallel market rate to say that our currency is overvalued and therefore calling for devaluation. This is very unfortunate.
“The parallel market is a shallow market of only about 5 per cent of the foreign exchange market which is patronized by people who go there for cash to offer bribes and corruption. Parallel market is the place where people who don’t want to provide documents go.
“At the E& I (Import& Export) Window, the rate is about N386 or N387 / $1. We don’t control the I & E window. Why will anyone use the parallel market to say that the exchange rate is over N480/$1?”, Emefiele queried.
He pointed out that even this year alone, the Naira had been devalued by about 28 per cent just as other international currencies due to weakening economic performances of most economies globally.