The Central Bank of Nigeria will try to eliminate the spread between the official and black market exchange rates against the dollar.
So says the Minister of Finance, KEMI ADEOSUN.
The Naira is trading on the parallel market about 40 per cent lower than the official rate as low global crude prices have dried up vital oil revenues and pushed Africa’s largest economy into recession.
The CBN scrapped a 16-month-old peg of 197 naira to the dollar in June, but it continues to trade in the official market, so that the naira remains far stronger against the dollar there than on the parallel market, with the government blaming the black market for damaging the already shaky economy.
Minister ADEOSUN in a text message to news agency Reuters, said the CBN is working on the elimination of arbitrage, but failed to say how this would be done.
The Naira has traded around 305.5 Naira to the Dollar on the official interbank market since August, while it was quoted at 487 to the dollar on the parallel market on Monday.