CBN warns businesses against patronizing forex black market

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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 shortage of dollars.

In a video message by Emefiele, patronizing the parallel market is helping to overheat the foreign exchange market.

“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’’.

Meanwhile, the apex bank has postponed its Monetary Policy Committee meeting earlier scheduled to  Monday and Tuesday May 25 & May 26, 2020, but will now hold on Thursday May 28, 2020.

In a message by Director, Corporate Communications, CBN, Isaac Okorafor, the meeting was shifted due to the public holidays the Federal Government declared and that coincides with the old dates chosen for the meeting.

He said, “This is to inform our stakeholders and the general public that the May 2020 meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), earlier scheduled for Monday and Tuesday, May 25 and 26, 2020, respectively, will now hold on Thursday, May 28, 2020. This is as a result of the declaration of Monday and Tuesday, May 25 and 26, 2020, as Eid-el Fitr holidays.

“For the avoidance of doubt, the CBN has put in place all necessary machinery for the meeting to now hold for only one day on account of the on-going COVID-19 national lockdown and to align this meeting with extant rules of the Presidential Task Force (PTF) on COVID-19 and advisories from other relevant agencies. All inconveniences caused by these changes are regretted.”