The Central Bank of Nigeria (CBN) on Friday devalued the naira to N380 to a dollar and adopted a unified exchange rate.
Under the arrangement, the apex Bank pushed the official rate of the naira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378.
In a statement signed by CBN Director, Trade and Exchange Department, O.S Nnaji, the CBN directed the bureau de change operators to sell to end users at not more than N380 to dollar.
The CBN also pegged the volume of sale for each BDC at $20,000.The CBN has also moved the official rate to N360 to the dollar from N307 per dollar previously and now selling dollar to foreign portfolio investors (FPI) at N380 at the Investors’ & Exporters FOREX window from N366 per dollar previously.
The BDC operators are expected to buy dollar from the CBN at N378 per dollar, according to a circular sent to the BDC operators by the apex bank.
With this action, the regulatory bank has effectively unified the foreign exchange rates in the market in line with the recommendations of international financial institutions..
“Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs for the period Monday, March 23 to Friday, March 27, is as follows,” the CBN circular stated.
The development is coming three years after persistent pressure from international financial institutions such as the World Bank and International Monetary Fund.
The financial institutions had explained that with drop in foreign exchange reserves and decline in Nigeria’s dollar earnings over fall in crude oil prices, Nigeria had no option but to devalue its currency.
