Emefiele distances CBN from reported claims by finance minister on flexible exchange rate

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.

READ ALSO: CBN withdraws licenses of 11 international money operators

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.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now