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Again, Nigeria devalues naira by 1.56% in a bid to align currency exchange

By on November 27, 2020 0 168 Views

By Oludare Mayowa

The Central Bank of Nigeria (CBN) for the third time this year devalued the local currency by 1.56 percent in a bid to align the exchange rates at all the segment of the forex market

In a circular to International Money Transfer Organisations, banks and bureau de change, the regulatory bank adjusted its exchange rate of the naira to N390 per dollar at the bureau de change market to endusers.

“Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs for the period Monday, November 30 to Friday, December 4, 2020, is as follows:” the CBN wrote in the circular signed by its Director of Trade and Exchange O.S Nnaji.

In the new rate announced via a circular on Friday, the CBN said IMTOs will sell dollars to banks at N388 against N382 per dollar announced in August.

The regulatory bank also said commercial lenders will sell the dollar to the CBN at N389 to the dollar against N383 to the dollar it announced in August.

The CBN will sell dollars at the rate of N390 to bureau de change operators who in turn will sell to their customers at N392 to the dollar.

The regulatory bank had in August issued an adjusted change rate on the other segments of the forex market, which translated to an official devaluation of the local currency.

In the August circular, the CBN directed IMTOs to sell dollars to banks at N382, while banks will sell currency at N383 a dollar to the CBN and in turn, the apex bank will sell to the bureau de change operators at N384 per dollar.

The regulatory bank said the volume of dollar sales should be $10,000 per BDC while the exchange rate for the British pound sterling should be derived from the dollar cross rate on the date of sale.

The naira closed at N490 to the dollar on the parallel market on Friday, down 6.29 percent month-to-date and closed at N390.25 to the dollar on the Investors and Exporters’ (I&E) forex window.

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