Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor
Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele says the parallel market cannot be used to determine the true value of the country’s currency, as the value of the naira can only be determined by forces of demand and supply.
Emefiele made the statement on Tuesday in Abuja after the Monetary Policy Committee (MPC) meeting, adding that the parallel market rate is high mainly because of the illicit activities of people using the dollar for bribery.
The Apex Bank boss adds that the bank would raise its COVID-19-targeted facility from N150 billion to N300 billion in order to accommodate more Nigerians in a bid to cushion the impact of the pandemic that has pushed the nation’s economy into its 2nd recession in 5 years.
This according to Dr Emefiele, will spur consumer spending and accelerate recovery from the recession.
The apex bank, arising from its two-day meeting of the MPC, the last in 2020, resolved to leave all monetary policy parameters unchanged in continued efforts to stimulate economic growth.
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Everything about Nigeria is a contradiction of universal principles. Is Nigeria not a contradiction to the universal principle that a multi-ethnic nation should not practise unitary system if they want grow and prosper? so Emifiele might be right considering the fact that the movement of the Naira in the parallel market is dictated by speculation which is actually not exactly same as the natural forces of demand and supply.
By actively enabling a parallel market and maintaining an official market the CBN cannot talk of market forces with its chest
Absolutely…. It’s contradicting. The man has forgotten banking since he joined central bank. He’s thinking like a govt thief.