Undocumented diaspora remittance, reason for forex crisis — CBN

The Central Bank of Nigeria says undocumented diaspora remittance is the reason for the continued fall in Naira in the foreign exchange market.

The Acting Governor of the CBN, Folashodun Shonubi, disclosed this recently while delivering a lecture titled “Diaspora Remittances and Nigeria Economic Development” for members of the Executive Intelligence Management Course (EIMC) 16 at the National Institute for Security Studies, Abuja.

According to him, diasporic remittances are diverted into the parallel market, thereby leading to the continued depreciation of the Naira at the forex market.

He stressed that the unregulated nature of the black market was responsible for the forex crisis.

He said, “With those remittances, the dollars have come in;  we know the dollars have come in, but we don’t see them in the official system. So, they must be going somewhere.

“And the challenge with the black market, unofficial market or parallel market or whatever name you want to call it, is as a result that it is not regulated, and it becomes an easy place to have criminal activities.”

Recall that since the floating of Naira at the forex market, the country’s currency had continued to fall against the dollar, which stood at N950/$1.