How CBN further devalue Naira to N390 per dollar

The Central Bank of Nigeria (CBN) has further devalued the Nigerian local currency, Naira to N390 to a dollar.

The apex bank, in a move to stabilise the local currency against the dollar, directed Bureau De Change (BDC) Operators to sell currency at the new rate of N390 to a dollar.

This is N4 higher than the N386 per dollar which the apex bank had sold dollars to the BDC operators in recent time.

The development followed the depreciation of the exchange rate to N390 to the dollar at the Financial Market Dealers Exchange over the Counter NAFEX market, while the FMDQ NAFEX is an official market where the exchange rate is traded.

Also, the apex bank has also directed all licensed Bureau De Change operators to sell dollars to end-users at not more than N390 to a dollar.

The naira was traded at N390 to a dollar on Thursday and the rates remain almost the same on Friday trading for N390.25 to the dollar.

A recent circular had suggested that the CBN has devalued the exchange rate between the dollar and naira sold to the BDC’s to N390/$1.

The circular also mandated the BDCs to sell to potential buyers at N392/$1. The volume of sales for each market is $10,000 per BDC.

It said, “Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs, for the period Monday, November 30th to Friday, December 14, 2020, is as follows: IMTSOs to banks – N388/1USD; Banks to CBN – N399/1USD; CBN to BDCs – N390/1USD; BDCs to end-users, not more than N392/1USD.”

The circular signed by Dr O.S. Nnaji, Director of Trade and Exchange at the CBN, and dated November 30th, 2020 put the volumes of sale for each market at $10,000.00 per BDC.