The Central Bank of Nigeria (CBN) has adjusted the exchange rate requiring that Bureau De Change (BDC) operators will now sell the United States dollars at N392 to a dollar, lower than the N386 to the dollar it fixed at previously.
With this recent development, BDCs are now going to buy a greenback from the CBN at N390 per dollar, which is lower than the previous dollar at N384.
CBN said in its circular: ‘Weekly Exchange Rate to Distribute Revenue to International Money Transfer Service Operators’, signed by Dr. Ozoemena Nnaji, Director, Trade and Exchange.
Also, the International Money Transfer Service Operators (IMTSOs) stated that they would sell the greenback to the banks at the N388 exchange rate to the dollar; Banks should sell to CBN for $ 38 at N389, And BDCs expect
According to the circular, the exchange rate of revenue generated by IMTOs will be from Monday 30th November 2020 to Friday 4th December 2020.
“Please note that the GBP rate should be obtained from the USD cross rate on the date of sale,” it said.
CBN Governor, Mr. Godwin Emefiele, last Tuesday stressed that the parallel market cannot be used to determine the true value of a country’s currency.
He emphasized that the value of Naira could only be determined by the forces of demand and supply, and that the parallel market rate was primarily for illegal activities and for those who use the dollar for bribes.
Describing the black market as a stigma, he said it was only five per cent of the total foreign exchange market share and the value of the Naira could not be determined.
Responding to questions from journalists at the MPC meeting that Naira could now be overestimated in the opinion of some analysts, Mr. Godwin Emefiele expressed frustration that analysts who should know better had chosen to mislead Nigerians.
