cbn statement, 2017-01-24
If distortions that are created by the systemic/structural liquidity as well as illicit flows, as well as sustained dollarization are addressed, then the pressure and emerging rates in the BDC/parallel markets will be moderated, and the normal rational activities of arbitrageurs will close the gap between the official/parallel markets and nominal exchange rate will come closer to the real effective exchange rate and the real economy will ultimately not be shortchanged.
Sentiment: neutral
Topic: mp_exchange_rate