Nigeria: How CBN’s FX Policy Widens Exchange Rate Gap

The foreign exchange policy of the Central Bank of Nigeria (CBN) has adversely impacted on the naira stability across all markets and created a huge premium between official and parallel market rates, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has said.

Gwadabe, who spoke in a chat with financial journalists in Lagos, explained that with the official market rate now at N430/$ and parallel market rate now at N730/$, a huge rate gap of N300/$ now exists in the markets.

For him, the selling of forex earnings at a fixed rate of N430/$ while open market rate is N730/$ is an unorthodox practice that lacks credibility and transparency.