Apex bank endorses security raid on parallel market

intern

November 22, 2016 3:56 PM

According to the CBN Governor, the foreign exchange regulation in the country forbids trafficking in currency.

Nigeria's central bank governor Godwin Emefiele speaks during the monthly Monetary Policy Committee meeting in Abuja, Nigeria January 26, 2016.

The Central Bank of Nigeria (CBN) on Tuesday endorsed the crackdown on parallel market traders by the officials of the Department of State Services (DSS) across the country.

The CBN Governor, Mr Godwin Emefiele, disclosed this while addressing newsmen at the end of its Monetary Policy Committee (MPC) meeting in Abuja.

According to Emefiele, the foreign exchange regulation in the country forbids trafficking in currency.

He said that the DSS had the rights to enforce the law and make sure that currency hawkers were forced out of the “illegal trade.’’

The governor, who noted that it was demeaning for traders to hawk currency on the streets, urged the traders to legitimise their business by applying for Bureau De Change (BDC) licence.

NAN reports that officials of the DSS had raided the parallel markets in Lagos, Abuja and Onitsha over alleged arbitrary sale of forex.

The raid, which worsened dollar scarcity at its wake, had forced the naira to settle at N465 to a dollar.

Earlier, members of the MPC unanimously voted in favour of retaining the Monetary Policy Ratio (MPR) at 14 per cent, Cash Reserve Ratio (CRR) at 22.5 percent and the liquidity ratio at 30 per cent.

The governor said that the members of the committee took the decision after a critical assessment of the risks to the economy.

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