Yesterday in Abuja, at the conclusion of the most recent Monetary Policy Committee (MPC) meeting for 2020, CBN Governor Godwin Emefiele made this statement.
“It is outrageous that even analysts who ought to know better are utilizing parallel market rates to claim that our currency is overpriced and so advocating for devaluation,” he remarked. This is terribly regrettable.
“The parallel market is a shallow market of only about five per cent of the foreign exchange market which is patronised 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.
“I don’t see why those who should know are asking for devaluation. We don’t agree that the determination of the foreign exchange should be based on a market that is tainted. We will not use this as our benchmark to determine the value of our currency.”
“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?”
According to the governor, the Naira had already been devalued by about 28 per cent this year, just like many other currencies of the world.
