CBN technically devalues Naira, sets rate at ₦380 per dollar
The Central Bank of Nigeria sold naira at ₦380 per dollar to deposits money banks on Friday, the move that analysts said may end a multi-tiered exchange rate regime.
Analysts at PAC Capital Limited, having observed the pattern at the investors’ and exporters’ windows tagged the upward adjustment as technical devaluation.
According to the detail of the circular, CBN dollars sold to banks will be at the rate of ₦376 per dollar, while banks to CBN will be at ₦377 per dollar. This was contained in an official circular by the Director, Trade and Exchange Department of the CBN, Ozoemena Nnaji.
The circular said the decision is part of efforts by the bank to establish a uniform rate between the official and the parallel market rates for bureau de change operators.
The circular was on the disbursement of the proceeds of the International Money Transfer Operator (IMTO). The rate by CBN to Bureau de change operators will be ₦378/USD.
However, BDCs will sell to buyers at ₦380/USD, and the volume of sales for each market is $20, 000 per BDC.
Analysts at PAC Capital said: “In line with our expectation, Naira closed at 372/$ on I&E FX Window today and this indicates a technical devaluation”.
With the new rate, the CBN has now ended the era of multiple exchange rates that had been in place since 2016.
CBN technically devalues Naira, sets rate at ₦380 per dollar
