News Key Points:
- The Central Bank of Nigeria plans to change the name of the Investors and Exporters market to the Nigerian Foreign Exchange Market.
- This decision comes after recent changes and challenges in the foreign exchange market.
- There’s concern about money sent to Nigeria from other countries not being recorded officially.
The top leader of Nigeria’s main bank, named Folashodun Shonubi, has shared some news. He is part of the Central Bank of Nigeria (CBN). He said that a part of the money market, called the Investors and Exporters (I&E) window, will get a new name. Its new name will be the Nigerian Foreign Exchange Market (NFEM).
He shared this news in a special talk in Abuja. The talk’s name was “Diaspora Remittances and Nigeria Economic Development.” He spoke to a group of top learners at a big school there.
Only a short time ago, this main bank made some changes. They mixed different parts of the money market into the I&E window. Now, they look at the I&E window as the main and only money market.
The I&E window started in 2017 by CBN. In this market, people who have money or businesses can trade money. The price they use for trading is based on what the market is like at that time. This way, the price is right and fair for everyone.
More Words from the CBN Leader:
Shonubi shared, “We are going to give a new name to the I&E market. We will call it the Nigerian Foreign Exchange Market. This is because it is the only market we now look at.”
There have been some problems in the money market. Because of these problems, the value of Nigeria’s money went down a lot. In some places, it reached a very low value of N955 for every $1. But in the I&E window, it was N781.34 for every $1.
The leader of CBN said that some banks are doing things they shouldn’t with foreign money. The bank has plans to check these banks and maybe punish them.
The bank tried to get people to use the official market by giving them a small gift of N5 for every dollar. But, this idea didn’t work well, so they stopped it. But, the leader still believes that giving rewards can help bring people to the official market.
Problems with Money Sent to Nigeria:
Shonubi spoke about a big problem. People who live outside Nigeria send money back home. But, this money doesn’t always get recorded in the right way. Instead, it goes to a different market, called the parallel market.
Shonubi said that a lot of money sent to Nigeria is in dollars. But, this money isn’t always counted in the right way.
So, it goes to this parallel market. This parallel market isn’t watched or controlled by anyone. Because of this, some bad people can use it for bad things
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