President Bola Tinubu has said the unification of the official and parallel market rates is to save the country from financial wastage and is in the nation’s best interest.
In a statement issued on Thursday by his Spokesman, Dele Alake, the President said he could not continue to watch the country’s resources waste, hence the dismantling of the previously multiple foreign exchange system.
Speaking at a grand reception organised in his honour by the Lagos State Government at the State House in Marina, Tinubu said he could have chosen to keep the previously multiple foreign exchange system and benefit from it.
The president, however, said it was imperative to unify the markets and remove fuel subsidy in the early days of his administration.
He said: “I could afford to share the benefit by participating in the arbitrage, but God forbid! That’s not why you voted for me.
“We need to take steps to stop the bleeding of our finances through speedy action on fuel subsidy. We have no choice.”
Before the unification of the exchange rate by the Tinubu administration, the country operated four Foreign Exchange (FX) markets which included the Interbank FX Market, the Investors and Exporters (I&E) Window, Bureau De Change (BDC) Window and the Small and Medium Enterprises (SME) Window.
However, on June 14, the Central Bank of Nigeria announced the unification of all segments of the forex exchange market, implying that the exchange rate will rise or fall based on the supply and demand in the market.