Forex demand sparks concern as naira plunges to N840/$, CPPE calls for CBN investigation

Dr Muda Yusuf the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPEE) has called on the Central Bank of Nigeria to investigate the rising forex demand in the country amid continuous depreciation of Naira.

Speaking exclusively to Legit.ng, Yusuf explained that it is important that the CBN begins to interrogate the demands for forex and ensure it is not driven by capital flights or money laundering.

His words: "While it is clear that during the leadership of former CBN governor, Godwin Emefiele the various policies implemented created a backlog of forex, matured obligation and this has been unleashed since naira float.

"Typically this put pressure on the forex market and create a sharp depreciation on the exchange rate "It is however important that the CBN vet some of these demands, to be sure it is not capital flights or money laundering playing out.

The former Lagos Chamber of Commerce and Industry (LCCI) director general also asked the CBN to create a framework and intervene when necessary."

I am a strong advocate of the current forex free market decision, but it is also important that the CBN develop a framework is developed and ensure that it intervenes when necessary.

"It is important to do it; we cannot afford to leave the market to the forces of demand and supply there should be a framework for intervention."

Naira to dollar exchange rate

Yusuf's comments are coming amid continued forex shortages and the further widening disparity of rates across windows.

FMDQ securities reports that at the Investors and Exporters (I&E) segment the official foreign exchange (FX) market, the naira exchanged at N768.16/$1 on Thursday, July 20.

However, in the unofficial markets, specifically the Peer-2-Peer (P2P) and the black market, the naira exchanged at N850/$1 and N855/$1, respectively.