CBN to scrap black market sale of dollars next year

The Central Bank of Nigeria (CBN) will be eliminating the black market sale of dollars next year.

The Minister of finance made the revelations yesterday as she said Bureau de Change operatives are hurting the economy badly.

As at today, the exchange rate of naira to dollars hovers around 1$ to ₦485.

At times, it the naira trades 40% below the official rates against the dollar.

Commenting on the wide gap, Adeosun said the CBN has been mandated to scrap the damaging market.

The central bank “Sas been directed to do this and CBN has promised to do something.

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“They promised to put a system in place to eliminate the black market because it’s damaging the economy”, Adeosun said.

A Central bank spokesman, Isaac Okorafor, said the CBN is working towards “Ensuring that the FOREX market operates as effectively”.

He said the aim was to “Ensure there is no black market” but did not give details of how this would be achieved.

A top CBN official also confirmed that that the banking system regulator was working on ways to deemphasize the black market.

He said the black market had been used over time for speculative attacks on the Nigerian currency.

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However, he did not give a precise time when this would happen.

He, however, said the apex bank will go about the scrapping in a professional manner.

He said: “Serious strategic thinking on how to lay less emphasis on the black market dealers is being fashioned out by the Central bank.

“We will not use any unorthodox means.”

Nigeria had pegged the naira to the dollar at N197-N199 since March 2015 but the CBN scrapped the 16-month-old peg in June in favor of currency free float.