The Central Bank of Nigeria, CBN
on Friday reacted to claims by the Senate that it is selling dollars to some
businesses at an unofficial rate of N200.
On Wednesday, the Senate in a
resolution asked the Federal Government to direct the CBN to supply dollars at
a subsidised exchange rate of N200 to intending pilgrims to either to Saudi
Arabia or Israel.
The resolution followed a motion
by the former governor of Kebbi State, Adamu Aliero, APC-Kebbi, requesting, as
a matter of urgency, concession to be granted as a policy every year to the
pilgrims.
Mr. Aliero said his request
followed confirmed information he had that the apex bank was allocating foreign
exchange to some businesses at N200 to the dollar.
“The committee strongly
recommends the concession of N200 to $1 for 2017 Hajj, to bring down the cost
to a bearable level,” Mr. Aliero said. He did not name the businesses.
Based on the former governor’s
submission, the committee on foreign affairs, while submitting its report on
alleged “Extortion of Pilgrims” by the National Hajj Commission, adopted the
recommendation.
But, the CBN in a response on
Thursday, denied the allegations that it has been allocating FOREX to any
business at N200.
“It is not true,” CBN
spokesperson, Isaac Okorafor, said in a response to an SMS to him on Friday.
“We (CBN) are NOT selling FOREX
to anyone at N200 to the dollar. The lowest rate in the entire market is the
inter-bank rate, which ranges between N305 to N315,” he explained.
Since June 2016, when the CBN
unveiled the flexible FOREX policy, the apex bank was partially stripped of the
powers to intervene and fix the exchange rate of the Naira against any
currency.
With the policy, which
effectively removed CBN controls of the exchange rate, abolished the previous
N197-199 band to the dollar, with exchange rates in the international currency
market becoming a subject determined purely by the prevailing forces of demand
and supply.
The new arrangement created a
single inter-bank trading window, which determines the exchange rate of the
dollar to the Naira..
The chief executive of Pan Africa
Development Corporation, Odilim Enwegbara, who was one of the Nigerians that
reacted to the resolution by the Senate on Thursday, said under the prevailing
floating exchange rate policy, the CBN was handicapped to meet the lawmakers’
request.
“By virtue of the CBN floating
exchange rate policy, the exchange rate is determined by market forces. Any
intervention by the CBN is illegal,” Mr. Enwegbara said.
Most other Nigerians, who
commented on the issue, have condemned the resolution, describing it variously
as ridiculous, selfish, and self-serving.
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ReplyDeleteVery good decision
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