As the Central Bank of Nigeria, CBN, struggles to stabilise the currency exchange rate, the Governor, Godwin Emefiele, has accused some Local and Foreign Investors of buying the dollar from the parallel market, popularly referred to as ‘black market’.
A dollar was sold for N460 at the parallel market, on Wednesday, which is higher than the inter-bank rate of N361 to a dollar. More so, the dwindling oil prices caused by the coronavirus pandemic, have greatly affected the country’s economy, and have reduced the dollar in circulation.
The situation was also compounded by the suspension of sales of foreign exchange to Bureau de Change Operators by the CBN.
The Investors and Exporters’ window is also badly affected by the liquidity crisis in the foreign exchange market.
However, since the demand for the dollar by Importers, foreign Investors in the debt market who want to repatriate their funds are higher; many have resorted to buying from the parallel market, which takes its toll on the country’s economy.
In a video footage exclusively obtained by Politics Nigeria (not Page 36), the Apex Bank’s Governor warned the Investors against buying the dollar from the parallel market.
He spoke at a virtual meeting held with some Foreign and Local Investors, including Africa’s Richest man, Aliko Dangote; Huawei, a telecommunications company, and Herbert Wigwe, the Managing Director of Access Bank group.
Emefiele said: “We have seen your account already, but we are appealing to you to stop and do what is right and what is legal, so that Nigeria can be a better place for you to live in.
“Do not go into illegal business. Do your business legally and make your money. I repeat and I know it. I know some of you are involved. Stop now! By you going to the parallel market, you are helping to overheat that market.”
He also spoke about the implications, which is losing their earnings, as a result of overheating the market.
“Not only that you will lose money (because you would have bought at a price that is not realistic)… I can tell you that you are going to lose money.”
“We are seeing some of those transactions, and I feel I need to call you guys for this meeting let us talk. Do not overheat the market by sounding desperate, and buying dollars at those exorbitant prices.”
He then promised that the Apex Bank will provide more liquidity for the Investors to stop patronising the parallel market.
“We have taken note of some of you, on what you need. Go ahead and do your business. Nothing will stop your forward. Your forward will be at the committed price. We are going to provide more liquidity to the market, so that you people can stop going to the parallel market. Do not go there!”, he appealed.