Central Bank Of Nigeria Technically Devalues The Naira, Now Sells At N380 Per Dollar, As The Coronavirus Shakes The Economy

The Central Bank of Nigeria, CBN, has technically devalued the naira to exchange to a dollar at N380.

The Apex Bank took this decision after all interventions in the market, such as imposing sanctions on errant operators, and use of moral suasion to curb illegal forex operations, did not sustain the exchange rate of N360.

In a circular to the operators in the sector, the CBN merged the rates at both the bureau de change rate, and Import & Export window, at N380.

Under the new dispensation, the CBN would make the dollar available to the BDCs at N378, which would be sold at N380.

The President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said that the merger of the different rates became necessary, to build confidence in the sector.

He stated that this would make it impossible for those dealing in illegal operations and speculators to be profitable.

Gwadabe said that it was an unacceptable situation for Operators to access the dollar below N360, and be selling at between N370 and N375.

“There is a circular on it; we are to be buying at N378 and sell at N380”, he said.

He revealed that the rise in the exchange rate was not due to genuine demand, because people were not really travelling or importing goods.

“The situation cannot remain like this; things will improve. If coronavirus goes, we will get over it”, he added.

It would be recalled, that in the previous week, the naira exchanged between N405 and N420 to a dollar, in the BDC segment of the market.

This was attributed to the crude oil price, which fell drastically in the international market, and this raised speculations among the BDC Operators, and Nigerians in general.

ABCON had said that the movement was as a result of recklessness on the side of the Operators, when they wanted to speculate.

It stated that there is no reason for that, because the CBN had continued to maintain support for liquidity to the BDC subsector.

Before then, the CBN had maintained the exchange rate at about N360, for more than three years.

However, the CBN had said that it was working with the fiscal authorities, to properly ease the impact of the coronavirus, and ensure a sound and stable financial system.

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