CBN Devalues Naira In Parallel Market, Directs BDCs to Sell At N380 – $1, Official Rate Now N360 -$1

CBN Governor, Mr. Godwin Emefiele.

BEVERLY HILLS, March 20, (THEWILL) – The Central Bank of Nigeria, CBN, has directed licensed Bureau de Change operators to exchange $1 at N380 as against the previous rate of N360 – $1 following current developments in the international markets.

The CBN also noted that it will provide $20, 000 to licensed dealers per trading window.

The regulator also adjusted the official rate of the naira to N360 – $1 on its website. The official rate until Friday afternoon was N307 – $1.

The apex bank had earlier Friday adjusted the rate to N380 -$1 at foreign portfolio investors (FPI) Investors’ & Exporters FOREX window from N366 per dollar. A source at the CBN who asked to remain anonymous disclosed the development to THEWILL Friday afternoon.

CBN Governor, Mr. Godwin Emefiele had as at last week resisted pressures to devalue the naira but with crude oil, which accounts for 90% of foreign exchange earnings down to around $27 per barrel this week from $67 coupled with falling reserves, the bank was forced to adjust rates at the close of business Friday.

ALSO READ: Update: Nigeria Technically Devalues Currency

According to a circular from the regulator’s Director, Trade and Exchange Department, Dr. O.S Nnaji, BDC operators are expected to buy dollar from the CBN at N378 per dollar and sell to customers at N380.

The CBN’s latest move converges the exchange rate at the I&E window and parallel markets.

“Please be advised that the applicable exchange rare for the disbursement of proceeds of IMTOs for the period Monday March 23 to Friday March 27, 2020 is as follows:  IMTOs to banks N376/1USD; Banks to CBN N377/1USD; CBN to BDCs N378/1USD; BDCs to end-users-Not more than N380/USD; Volume of sale for each market is USD20, 000 per BDC,” Director, Trade and Exchange Department, Dr. O.S Nnaji said in the circular titled “Weekly Exchange Rate for Disbursement of Proceeds of International Money Transfer Services Operators, IMTOs.”