What CBN plans to do about Nigeria's exchange rate
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Godwin Emefiele, the Governor of the Central Bank of Nigeria, says the bank is planning to unify the naira exchange rate around its NAFEX.
NAFEX rate is the foreign exchange window where Exporters and Investors transact dollars on market-determined prices.
Isaac Okorafor, CBN's director of corporate communication affirmed that the governor will not give in to blackmail in the conduct of forex Emefiele spoke on Tuesday at an online investors conference with the Federal Government of Nigeria by CitiBank.
Nigeria promised a unification of exchange rates in its application for the $3.4 billion loan from the International Monetary Fund, which was acquired last month to cushion the effects of coronavirus pandemic.
Emefiele pointed out that the naira has been “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 fell below the Central Bank rate”
According to him, “it could only be those who are dealing in what is simply called corrupt practices that will be dealing in that market and we are not about to talk about unification of our exchange rate around people who are dealing illegally.”.
Emefiele pointed out that those willing to deal in forex should ensure to utilize the recognized NAFEX market. That is why unification will have to be around the NAFEX.