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By Emma Ujah
Those using parallel market rate to put pressure on the Central Bank of Nigeria (CBN) to devalue the Naira won’t have their way.
The CBN Governor, Mr Godwin Emefiele gave this indication at the end of the last 2020 Monetary Policy Committee (MPC) meeting, in Abuja, yesterday.
He 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 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.
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