Breaking: CBN Devalues Naira, Sells Dollar At N380/USD

As part of efforts to establish a uniform rate between the official and the parallel market rates for Bureau De Change operators, the Central Bank of Nigeria (CBN), has made an alteration to the price of dollar sales.

iBrandTV gathered that CBN Friday, sold dollars to deposit money banks at the rate of N380 to one dollar signaling the official return of a single exchange rate regime in the country’s foreign exchange market.

This development signals that, going forward, dollars sold to banks will be at the rate of N376 per dollar, while banks to CBN will be at N377 per dollar.

In an official circular signed by the Director, Trade and Exchange department of the CBN, Ozoemena Nnaji, it stated that the circular was on the disbursement of the proceeds of the International Money Transfer Operator (IMTO).

With the current development, the CBN has effectively collapsed the multiple exchange rate policy used in determining the value of the Naira since June 2016.

The country will now have a single exchange rate for official transactions and bureau de change operators as well as for importers and exporters of goods and services, amongst others.

This is the highest official exchange rate between the dollar and naira in the last two years.

Also, the rate by CBN to Bureau de change operators will be N378 per dollar, while BDCs to end-users should not be more than N380 per dollar. and the volume of sales for each market is $20, 000 per BDC.

In a communique to all banks and Bureau De Change on Friday, the CBN advised that the BDC to end-user sales of the Dollar should not be more than N380/1USD.

This is the highest official exchange rate between the dollar and naira in over two years suggesting a devaluation might be in the pipeline.

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