In line with the recommendation of the International Monetary Fund and World Bank; the Central Bank Of Nigeria has reduced the value of naira compared to Dollar by #6. The devaluation is to achieve a unified exchange rate between the local currency and USD.
In respect of the new rates, the International Monetary Transfer Service Operators sell dollar to banks at N388 per dollar, a figure higher than the previous rate of N382 per dollar. However banks presently sell dollar to Central Bank of Nigeria at N389 per dollar, which was before N383 per dollar.
In a circular signed by Cebtral Bank of Nigeria’ Director, Trade & Exchange Department, O.S Nnaji, it was expressly stated that the applicable exchange rate for the disbursement of proceeds of International Money Transfer Service Operators from Monday November 30 to Friday December 4, 2020 is: dollar to banks at N388 per dollar; banks sale of dollar to CBN at N389 per dollar; CBN sale of dollar to Bureau-De-Change’ at N390 per dollar. BDCs sale to end-users at not more than N392 per dollar. Bureau-De-Change is entitled to buy $10,000 weekly.
Before the devaluation was carried out CBN sold dollar to Bureau-De-Change at #384 per dollar but presently sells at #390 per dollar; while the Bureau-De-Change’ are mandated to sell at not more than #392 per dollar.
The current devaluation of the local currency came after serious financial push amoung financial market managers, the World Bank and International Monetary Fund for the Nigerian currency to be devalued.
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