{"id":156223,"date":"2023-08-11T10:31:24","date_gmt":"2023-08-11T09:31:24","guid":{"rendered":"https:\/\/newmail-ng.com\/?p=156223"},"modified":"2023-08-11T10:31:24","modified_gmt":"2023-08-11T09:31:24","slug":"diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn","status":"publish","type":"post","link":"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/","title":{"rendered":"Diversion of diaspora remittances to parallel market weakens naira, says CBN"},"content":{"rendered":"

The Central Bank of Nigeria (CBN) has attributed the free fall of the naira against the dollar to the diversion of diaspora remittances to the parallel market.<\/strong><\/p>\n

Folashodun Shonubi, CBN acting governor, spoke while delivering a lecture titled \u2018Diaspora Remittances and Nigeria Economic Development\u2019 at the National Institute for Security Studies in Abuja.<\/p>\n

T<\/strong><\/a>he naira tumbled to an all-time low of N950\/$ at the parallel\/black market on Thursday \u2014 two months after the currency\u2019s float.<\/p>\n

Meanwhile, at the investors and exporters (I&E) window, the naira appreciated slightly by 0.13 percent to close at N781.34\/$.<\/p>\n

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Speaking at the event, Shonubi said a lot of diaspora remittances arrived in Nigeria in dollars and end up in the parallel market without being officially documented.<\/p>\n

\u201cWith those remittances, the dollars have come in, we know the dollars have come in but we don\u2019t see them in the official system. So, they must be going somewhere and somewhere,\u201d Shonubi said.<\/p>\n

\u201cAnd the challenge with the black market, unofficial market or parallel market or whatever name you want to call it, it is not regulated, and it becomes an easy place to have criminal activities.<\/p>\n

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\u201cWe investigate bankers, not just bankers, anybody who has committed an offense, the first thing they want to do is to run to the black markets, change it to the dollars because it is less money to carry around.<\/p>\n

\u201cSome of the funding in the black markets are actually from diaspora remittances. That\u2019s why it important we need to know a lot of what\u2019s going on there.<\/p>\n

\u201cWe can\u2019t play the sentiment game. If we don\u2019t understand the dynamics, we usually go with the literature which does not necessarily work for us.\u201d<\/p>\n

Shonubi said the amount of inflows coming through many unapproved channels and eventually ending up in the parallel market contributed significantly to Nigeria\u2019s foreign exchange (FX) crisis.<\/p>\n

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He said that implementing measures within the country to manage illicit remittances and detect these channels would be beneficial.<\/p>\n

This, he said, would ensure remittance flows into the proper channels, and harness maximum benefits to grow the economy.<\/p>\n

\u201cWe talk about black markets, which also create their own problems. Management of the foreign exchange market and the efficacy of our policies to manage the exchange rate becomes difficult due to the insignificance of our diaspora remittances which are going to other markets,\u201d the CBN boss said.<\/p>\n

\u201cToday, someone called me privately and said that this thing (naira) has gone up to some levels in the black markets, my question was, what do you want me to do? Do I operate in the black markets? I don\u2019t know the basis of pricing in the black markets.<\/p>\n

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\u201cThe other thing people don\u2019t realise is that, because you don\u2019t have full information, and I will give you an example since we started the I&E window. We found out that some people would deliberately wait until the last minute and do one transaction of $5,000 and that becomes the closing rate.<\/p>\n

\u201cWe can\u2019t do without diaspora remittances. For many countries, that\u2019s their main source of income.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The Central Bank of Nigeria (CBN) has attributed the free fall of the naira against the dollar to the diversion of diaspora remittances to the parallel market. Folashodun Shonubi, CBN acting governor, spoke while delivering a lecture titled \u2018Diaspora Remittances and Nigeria Economic Development\u2019 at the National Institute for Security Studies in Abuja. The naira […]<\/p>\n","protected":false},"author":7,"featured_media":156224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,15,2],"tags":[101,61256,60233,26095],"yoast_head":"\nDiversion of diaspora remittances to parallel market weakens naira, says CBN | New Mail Nigeria<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Diversion of diaspora remittances to parallel market weakens naira, says CBN | New Mail Nigeria\" \/>\n<meta property=\"og:description\" content=\"The Central Bank of Nigeria (CBN) has attributed the free fall of the naira against the dollar to the diversion of diaspora remittances to the parallel market. 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The naira […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\" \/>\n<meta property=\"og:site_name\" content=\"New Mail Nigeria\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/pages\/NewMailNG\/156576314503603\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-11T09:31:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/newmail-ng.com\/wp-content\/uploads\/2023\/08\/Folashodun-Shonubi-AG-CBN-Gov.png\" \/>\n\t<meta property=\"og:image:width\" content=\"680\" \/>\n\t<meta property=\"og:image:height\" content=\"365\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Friday Ajagunna\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NewMailNG\" \/>\n<meta name=\"twitter:site\" content=\"@NewMailNG\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Friday Ajagunna\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\"},\"author\":{\"name\":\"Friday Ajagunna\",\"@id\":\"https:\/\/newmail-ng.com\/#\/schema\/person\/2753354db9987f85e00f5b4d9d79716e\"},\"headline\":\"Diversion of diaspora remittances to parallel market weakens naira, says CBN\",\"datePublished\":\"2023-08-11T09:31:24+00:00\",\"dateModified\":\"2023-08-11T09:31:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\"},\"wordCount\":536,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/newmail-ng.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/newmail-ng.com\/wp-content\/uploads\/2023\/08\/Folashodun-Shonubi-AG-CBN-Gov.png\",\"keywords\":[\"CBN\",\"Diaspora remittances\",\"Folashodun Shonubi\",\"Parallel Market\"],\"articleSection\":[\"Business & Economy\",\"Headline\",\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\",\"url\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\",\"name\":\"Diversion of diaspora remittances to parallel market weakens naira, says CBN | New Mail Nigeria\",\"isPartOf\":{\"@id\":\"https:\/\/newmail-ng.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/newmail-ng.com\/wp-content\/uploads\/2023\/08\/Folashodun-Shonubi-AG-CBN-Gov.png\",\"datePublished\":\"2023-08-11T09:31:24+00:00\",\"dateModified\":\"2023-08-11T09:31:24+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#primaryimage\",\"url\":\"https:\/\/newmail-ng.com\/wp-content\/uploads\/2023\/08\/Folashodun-Shonubi-AG-CBN-Gov.png\",\"contentUrl\":\"https:\/\/newmail-ng.com\/wp-content\/uploads\/2023\/08\/Folashodun-Shonubi-AG-CBN-Gov.png\",\"width\":680,\"height\":365,\"caption\":\"Folashodun Shonubi\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/newmail-ng.com\/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/newmail-ng.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Diversion of diaspora remittances to parallel market weakens naira, says CBN\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/newmail-ng.com\/#website\",\"url\":\"https:\/\/newmail-ng.com\/\",\"name\":\"New Mail Nigeria\",\"description\":\"Hottest and Latest Updates of News in Nigeria. 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