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Why We Created Multiple Exchange Rates—cbn by dipoolowoo: 7:18am On May 26, 2017 |
By Dipo Olowookere The Central Bank of Nigeria (CBN) has justified its creation of the various exchange rates for the Naira against the major foreign currencies at the forex market. According to the apex bank, these rates were created because they were very necessary to a single economy like Nigeria battling with crisis. At the moment, there are over five exchange rates for individuals and investors to access in the foreign exchange market in Nigeria. While there is the official CBN rate, banks have their own rates, just like the parallel market has its own, which seems to be the highest and easily accessible to residents of the country. Since the nation’s economy slumped into recession in 2016, the Naira has crashed against major currencies at the forex market and at a time in 2017, the local currency was almost hitting N600 per Dollar at the black market until the CBN quickly intervened. As part of its intervention, the apex bank created different windows for various segments of the economy. At the moment, there is a special forex window for SMEs, investors, manufacturers, invisibles and others. However, the creation of these multiple exchange rates have been criticised by some Nigerians including a former Governor of the CBN. But spokesman of the apex bank, Mr Isaac Okorafor, has explained the rationale behind this move by the bankers’ bank. During an interaction with Nigerians yesterday, which was monitored by Business Post, Mr Okorafor noted that these multiple exchange rates were created because of the situation the country found itself. According to the CBN’s mouthpiece, “In a time of crisis, economies are known to have preferential rates for critical sectors,” adding that these special windows with variant rates were creatively created to meet the forex demands of those in the different sectors. Explaining why the Naira crashed at the forex market, Mr Okorafor said, “There was a decline in forex inflow, putting pressure on reserves and the exchange rate of the Naira.” He further explained that this was majorly caused by “the collapse of global oil prices exacerbated by failure to diversify,” which made the economy vulnerable to the resultant shocks. Mr Okorafor noted that during this period, there were also “speculative attacks on the Naira by people who took advantage of the depleting forex.” He said this forced the CBN to create a “window for SMEs, investors and export proceeds, increased sales to BDCs, and introduced forward settlements.” According to him, the CBN “created a list of items that could be produced in Nigeria and excluded them from accessing interbank forex.” “We intensified the regulation of banks with respect to their forex practices. A number of banks were sanctioned,” he said further. Mr Okorafor noted that these steps had been fruitful, revealing that the CBN Anchor Borrowers Programme introduced has produced 2.1MT of rice, setting Nigeria on the road to rice sufficiency by 2018. http://www.businesspost.ng/2017/05/26/why-we-created-multiple-exchange-rates-cbn/ 1 Like 3 Shares
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Re: Why We Created Multiple Exchange Rates—cbn by smartty68(m): 7:44am On May 26, 2017 |
Who still takes CBN serious these days Even with the various creation of FX rates for the Naira, what diffence has it made on the economy Manipulators. Mtchewww 1 Like |
Re: Why We Created Multiple Exchange Rates—cbn by AceRoyal: 7:44am On May 26, 2017 |
Forget the hogwash, u guys created multiple exchange rate because you guys are confused, clueless and corrupt! Multiple exchange rates aids corruption and economic sabotage which is a capital offense.The recession is this bad because of the lack of proactiveness, economic innovation,highhandedness and politicising of everything by this administration and the apex bank, which led to the country losing investors confidence. All these silly excuses and insults to our collective intelligence because May 29th is around the corner. Trying to justify cluelessness and incompetence to the detriment of the common man! 32 Likes 2 Shares |
Re: Why We Created Multiple Exchange Rates—cbn by beewhy009(m): 7:45am On May 26, 2017 |
Mumuism |
Re: Why We Created Multiple Exchange Rates—cbn by mikeade11(m): 7:45am On May 26, 2017 |
booked |
Re: Why We Created Multiple Exchange Rates—cbn by raphealolami(m): 7:45am On May 26, 2017 |
Interesting |
Re: Why We Created Multiple Exchange Rates—cbn by mykelmeezy: 7:45am On May 26, 2017 |
abi because of how clueless you are 5 Likes
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Re: Why We Created Multiple Exchange Rates—cbn by Nobody: 7:46am On May 26, 2017 |
Amazing conversation |
Re: Why We Created Multiple Exchange Rates—cbn by Repairnigeria(m): 7:46am On May 26, 2017 |
NASA fraud economy |
Re: Why We Created Multiple Exchange Rates—cbn by jeftalene(m): 7:48am On May 26, 2017 |
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Re: Why We Created Multiple Exchange Rates—cbn by JAMANZE: 7:48am On May 26, 2017 |
Buhari Economic policy. Fire by force economy |
Re: Why We Created Multiple Exchange Rates—cbn by Teewhy2: 7:48am On May 26, 2017 |
Nigeria things are always different. Desperate problem requires desperate solution at least it has made the naira to be a bit stable for sometime. Are you building on a swampy area, want to do pile foundation /Need Roof parapet. Reduce the building load by making use of polystyrene material for your roof parapet and slab. Click below to get more information https://www.nairaland.com/3726763/alternative-building-material-expanded-polystyrene |
Re: Why We Created Multiple Exchange Rates—cbn by okolimike(m): 7:48am On May 26, 2017 |
ok na.. we dey look una |
Re: Why We Created Multiple Exchange Rates—cbn by Tender1(m): 7:48am On May 26, 2017 |
Explaining why the Naira crashed at the forex market, Mr Okorafor said, “There was a decline in forex inflow, putting pressure on reserves and the exchange rate of the Naira.” HONESTLY SPEAKING, THIS MAN DOESN'T HAVE THE SKILLS TO APPLY AS AN ECONOMIST.
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Re: Why We Created Multiple Exchange Rates—cbn by jeftalene(m): 7:49am On May 26, 2017 |
Multiple exchange rates? fascinatingNigeria |
Re: Why We Created Multiple Exchange Rates—cbn by DjAndroid: 7:50am On May 26, 2017 |
Take am 1 Like
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Re: Why We Created Multiple Exchange Rates—cbn by Nobody: 7:50am On May 26, 2017 |
Trial and error forex policy,mixing clueless ness with bravery ness=buharinomics 2 Likes |
Re: Why We Created Multiple Exchange Rates—cbn by smartty68(m): 7:51am On May 26, 2017 |
AceRoyal:I just tire Bro. Cluelessness is the other of the day |
Re: Why We Created Multiple Exchange Rates—cbn by Qyubee(m): 7:52am On May 26, 2017 |
plausible explanation if u ask me. Seasoned economists in d house enlighten us further abeg! 1 Like |
Re: Why We Created Multiple Exchange Rates—cbn by Dottore: 7:53am On May 26, 2017 |
Nonsense people |
Re: Why We Created Multiple Exchange Rates—cbn by Firefire(m): 7:58am On May 26, 2017 |
Confused government, after your useless body |
Re: Why We Created Multiple Exchange Rates—cbn by AceRoyal: 7:59am On May 26, 2017 |
smartty68:Its so sad and disheartening |
Re: Why We Created Multiple Exchange Rates—cbn by three: 8:03am On May 26, 2017 |
So that some select persons can profit 1 Like |
Re: Why We Created Multiple Exchange Rates—cbn by Nobody: 8:04am On May 26, 2017 |
Olodoooooooo!!!! Pure corrupt practice and incompetency! 1 Like |
Re: Why We Created Multiple Exchange Rates—cbn by onome442(m): 8:16am On May 26, 2017 |
Fg did it to steal |
Re: Why We Created Multiple Exchange Rates—cbn by EMIOMOADEOYE: 8:46am On May 26, 2017 |
5 Exchange rates. Where in the world does that happen. 5! A whole 5! And you are still trying to justify. Ori gbogbo yin to daru. 2 Likes |
Re: Why We Created Multiple Exchange Rates—cbn by dedunji: 8:49am On May 26, 2017 |
Am even looking for were I can buy dollars 700 so I can sale my goods higher .who cheap tins epp ,CBN you think you are doing us you are doing your self set of confused and outdated brains chilling in mutually thinking it is an AC . |
Re: Why We Created Multiple Exchange Rates—cbn by unitysheart(m): 9:15am On May 26, 2017 |
I know of the anchor borrower initiative for Rice. Some of my friends assessed the loans. |
Re: Why We Created Multiple Exchange Rates—cbn by EvilMetahuman: 9:23am On May 26, 2017 |
I have been saying it and will keep saying it This is dumbest cbn ever. Emeifele is simply dumb and should have been sacked long ago. But then we have a clueless president who doesn't know a thing. 1 Like |
Re: Why We Created Multiple Exchange Rates—cbn by Rick9(m): 10:12am On May 26, 2017 |
These guys are not well educated. |
Re: Why We Created Multiple Exchange Rates—cbn by OBAGADAFFI: 10:23am On May 26, 2017 |
At the moment, there are over five exchange rates for individuals and investors to access in the foreign exchange market in Nigeria |
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