CBN’s perversion and abject misconception of fixing the naira exchange rate show in construing the devalued segment rates as premium or gain or profit. To be sure, the CBN’s illegal hold on WFAD does not translate into monopoly ownership of forex in the system. Those principles apply to the handling of the naira as a commodity and CBN monopoly product. xCBN’s WFAD distributorships’ devalued exchange rates along with the official Appropriation Act exchange rate (AAR) grossly undervalue the naira currently. In the SFM, the banks cease to be exchange rate fixing distributors but become commission-earning forex brokers.

Source: The Guardian September 22, 2021 04:15 UTC