CBN devalues Naira as exchange rate moves closer to unification

The Central Bank of Nigeria (CBN) has further devalued the Naira by N6 to Dollar, moving closer to the exchange rate unification agenda of the apex bank as recommended by the International Monetary Fund (IMF) and World Bank.

The new rates  pegged IMTOs sale of dollar to banks at N388 to dollar, higher than previous rate of N382 to dollar; banks sale of dollar to CBN at N389 to dollar, as against previous rate of N383 to dollar.

Also, CBN sale of dollar to BDCs was pegged at N390 to dollar, as against previous rate of N384 to dollar. The BDCs are directed to sale to end-users at not more than N392 to dollar, as against the previous rate of N386 to dollar.

The apex bank however retained policy authorizing each BDC to buy $10,000 weekly.

The circular signed by CBN Director, Trade & Exchange Department, O.S Nnaji, said: “Please be advised that the applicable exchange rate for the disbursement of proceeds of International Money Transfer Service Operators (IMTOs) for the period Monday November 30 to Friday December 4, 2020 is as follows”.

The circular titled: ‘weekly Exchange Rate for Disbursement of Proceeds of International Money Transfer Service Operators’ pegged IMTOs sale of dollar to banks at N388 to dollar; banks sale of dollar to CBN at N389 to dollar and CBN sale of dollar to BDCs at N390 to dollar. The BDCs are now expected to sell to end-users at not more than N392 to dollar and each BDC is entitled to buy $10,000 weekly”.

The CBN circular also directed that the Great Britain Pounds (GBP) rate should be derived from the US Dollar across rate on the date of sale.

The last adjustment of the naira exchange rate was on August 27, 2020.  A quick check on the CBN website as at Friday, November 20, showed that the official exchange rate still remained at N379 to dollar. The apex bank had earlier moved the official rate to N360 to dollar from N307 to dollar.

In a weekly exchange rate for disbursement of proceeds of International Money Transfer Service Operators (IMTOs) for November 30, 2020, all authorized dealers, Bureau De Change (BDC) Operators and Service Providers were advised to add N6 across all rates.