The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has warned businesses and individuals against patronizing the parallel market, popularly called the black market.
He warned them to stop using black markets for foreign currency exchange, following the liquidity crisis triggered by low oil prices and a shortage of dollars.
This was disclosed in a video message, which was monitored by Nairametrics.
According to the CBN governor, patronizing the parallel market is helping to overheat the foreign exchange market. He further pointed out that the exchange rate at parallel market is unrealistic and that businesses and speculators that keep on patronizing them will lose money.
In his statement, Godwin Emefiele said,
“I know some of you are involved, stop now. By going to the parallel market, you are helping to overheat that market. Not only that, you will lose money because you would have bought it at a price that is not realistic.
“I can tell you that you are going to lose money. But we have seen your account already. We are appealing to you, please stop and let’s do what is right, what is legal, so that Nigeria can continue to be a good place for you and to live in.”
Going further, he said, “We are taking note of some of you and I can tell you, go ahead and do your business, nothing will stop your forward, your forward will be at a committed price, we are going to provide more liquidity in the market so that people can stop going to the parallel market. Don’t go there because it is not good for you. But be patient, it’s going to be orderly’’.
Forgot to post the video yesterday. Best part – listen to the voice where it was recorded pic.twitter.com/33SEHsCicO
— tyro (@DoubleEph) May 20, 2020
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The demand for dollars has been on the increase without adequate supply, thereby putting a lot of pressure on the naira. Importers with outstanding obligations have scrambled for foreign exchange while the providers of foreign exchange, such as foreign investors, have exited.