Naira unification may lead to losses for black market speculators

Naira unification black market operators

Naira unification may lead to losses for black market speculators

Nigeria’s currency black market operators seem to be running out of time following the latest confirmation by the CBN Governor, Godwin Emefiele that plans to unify the Naira around the NAFEX rate was underway. The Governor said this at an Investors Conference organized by CitiBank. 

Nairametrics reported on Tuesday that the CBN Governor confirmed the unification plans stating that if it is to be done, it will be around the NAFEX rate and not the black-market rate. The Governor also used the opportunity to take a swipe at black market speculators, describing those who purchase forex in that market as dealing in illegal activities.  

According to him, the rates they are buying the dollar from the black market are unrealistic. He said: “The CBN has always maintained that the black market is not a good determinant of the value of the naira. 

“You’ll find that people who are in a hurry and do not want to procure the kind of documentation required, will sometimes rush to those markets.

“But we have used the period of this pandemic to prove that anybody dealing in that market is dealing in an illegal business.”  

A Foreign Exchange dealer at Nigeria’s biggest bank by assets told Nairametrics exclusively that the unification of the Naira’s exchange rates has already begun. He said;  

“The unification has already commenced with the rate at which CBN sells funds for SME and payment for School fees, travelling allowance and medical payment is within the IEFX levels.  

“As stated by the CBN Governor, the speculators in the Black market will lose money as soon as CBN begins selling to the BDCs and international flights starts. There’s also a need for the CBN to clamp down on speculators and round trippers in the market to stabilize rate which should not be more than c.$/N400”  

Emefiele, strengthened his cause of eradicating other currency exchange systems, while speaking at the conference, saying that the various exchange rates will be unified around the I&E window (NAFEX) exchange rate.   

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