CBN targets N200/$ parallel market rate, looks up to fiscal policies

In a strategic move at sustaining the recent appreciation of the local currency, naira, the Central Bank of Nigeria (CBN) has decided to target the parallel market and ensure that the margin between the market and official rate does not exceed N3.00, BusinessDay can authoritatively reveal.

The new approach, which is anchored on government’s resolve to maintain her non- devaluation stance, is a product of research and careful study of the menace posed by the operators in the parallel market. This will ensure that the current effort in directing foreign exchange to the real sector and other essential sectors like medical and education is sustained and closely monitored.

The thinking of the apex bank is that energizing the real sector through forex allocations to manufacturers and complementing the monetary policies with the fiscal policies of government will make devaluation unnecessary as well as trading in the greenback less attractive.

 

 

John Omachonu