Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has denied reports that the Nigerian government was operating a flexible exchange rate, and only recognises the investors and exporters rate.
The Minister of Finance, Zainab Ahmed, had been quoted by Bloomberg to have said there was only one official rate between the government and the CBN. This statement ruled out the parallel market.
However, after the monetary policy committee meeting on Tuesday, March 23, 2021, Emefiele said Ahmed was misquoted to fit the narrative of persons who would have benefited from such action.
The apex boss said the government was not operating a flexible exchange rate, but a managed float exchange rate. He said the managed float exchange rate enable the CBN have oversight on the forex market.
Emefiele said the system also allows the apex body intervene in the market whenever necessary. While clarifying the body with authority to make such statement about forex policy, Emefiele said the constitution empowers only the CBN.
Part of the CBN intervention, has seen the apex Bank disburse $80 million every week to the banks for school fees, PTA and business travel purposes.
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