The Central Bank of Nigeria (CBN) is seeking to ensure there is no black market as the naira sinks to 490 to a single dollar.

On Wednesday, the naira was trading at 314 at the official market, with parallel market recording 490/$1.

The British pound stood at 605, while the European Union currency, euro went for 510, a far cry of its 388,  327 range at the official side of the market respectively.
Vice President YemiOsinbajo, and Kemi Adeosun, minister of finance, had previously said the CBN was working on a foreign exchange system that eliminates arbitrage in the forex market.

Isaac Okorafor, the spokesperson for the bank, was quoted by Reuters to have said the bank was “ensuring that the forex market operates as effectively as we would envisage”.

He also said the aim was to “ensure there is no black market” but did not give details of how this would be achieved.

Godwin Emefiele, governor of the CBN, had said consistency that the parallel market could not be used to evaluate the true value of the local currency.

“It is unfair to use the shallow market as a basis for determining the value of our currency. No one uses the Travelex rate at Heathrow to determine the exchange rate for the pound in the United Kingdom,” Emefiele had said.

“So it is unfair to use that to determine the value of our currency. Those who are dealing in the market are doing so illegally. We should not be encouraging the tendencies of those people who are involved in capital flight, or those who want to conduct foreign exchange business without providing necessary documentation.”

http://leadership.ng/news/564735/naira-dips-to-n490-as-cbn-seeks-end-to-black-market

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Buhari!!!!!!! you have failed this nation

90% of this dollars go to China and then exchanged to Yuan. Why not just adapt yuan as the main Forex for trading ?

And In few months dollar will crash naturally.

k

What you get when you vote in a man with NEPA bill certificate into power

Ayam not surprised

If you are in the US or have relatives in the US trying to send money to naija, I will exchange the funds at 410/$, simply deposit into my US bank account and receive instant funding into your Nigerian account. Don't bother with western Union and co, they exchange at 375/$ with fees and the exchange rate drops to around 345/$.

See my contact below.

can we really eliminate the black market as far as forex is concerned, these people should look for solution rather than creating more problems for us through their policies

Dollars!

What becomes of those Mallams involved in it?

CBN should use policy and systems to curve this situation. I also advise the FG look for a way to increase the in flow of Dollars reduce the pressure on the parallel market!!!

The naira is sooo dull just like our number one citizen. Wake me up when it gets to #1000/$

Izoraaaait. Patiently anticipating 2000 to a dollar

Our foreign exchange market is messed up. CBN can not end the black market because banks are also benefitting from it!

All is well even in the underground well. I want to believe that the APC leaders and their followers still remember the poster below.

veekid:

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Buhari you have failed this nation

onatisi, this one na chronic buharist come see through him destiny

Observing.

alsudaes1:
What becomes of those Mallams involved in it?

it means they will av to register officially to be in the market , thus been regulated by the Cbn , instead of selling at black market rate , they will be selling at Cbn official rates

“It is unfair to use the shallow market as a basis for determining the value of our currency. No one uses the Travelex rate at Heathrow to determine the exchange rate for the pound in the United Kingdom,” - Emefiele

But the rate at Heathrow is a close proxy of the official rate. Nonetheless, what matters is not the official rate of the currency (especially interbank), but how much you can actually get it for. It's no use if the CBN cannot defend its desired rate with actual dollars.

If he wants the official and parallel rates to match, he should back it up with actual money, not talk. If he can't back it up, then he should allow it to find its market level. I can't go to Heathrow and say: "but my CBN governor said that the exchange rate is..."

The _real_ problem is all this intervention without any real structural changes. Just making sure we don't import refined petroleum (i.e. we have working refineries) will reduce a good amount of demand.

It will soon regain 1 naira before losing 5 naira again.

One step forward 5 steps backward

OZAOEKPE:

onatisi, this one na chronic buharist come see through him destiny

Their necks have growing thin,I told u all of them will start thinking straight

onatisi:

Their necks have growing thin,I told u all of them will start thinking straight

Why perfectmoney n other e-cutrencies dey go down? Now $1-#420

kenonze:
This is unacceptable.
Emefile need to Resign

for why na....things will get better

I see where this is going. Before Buhari leaves it will be #1000 to $1. Then they will finally rebase the currency to make #1 to $1. The guy actually has sense*


*I'm being sarcastic.

lifestyle1:
90% of this dollars go to China and then exchanged to Yuan. Why not just adapt yuan as the main Forex for trading ?

And In few months dollar will crash naturally.

hmm! good thinking. don't you think Yuan will go the way of dollar with time?

New day, same old sh*t

sammyj:
CBN should use policy and systems to curve this situation. I also advise the FG look for a way to increase the in flow of Dollars reduce the pressure on the parallel market!!!

they want to but the oil price is too low

Dem just dey kill Naira everyday