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Naira devaluation: CBN directs bureau de change operators to sell dollar at N392

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CBN

The Central Bank of Nigeria (CBN), according to Business Watch Nigeria, has directed Bureau De Change (BDC) operators in Nigeria to sell dollars at N392 to end-users.

This directive which brings the Naira closer to the exchange rate unification policy recommended by the International Monetary Fund (IMF) and the World Bank, was contained in a circular signed by O.S. Nnaji, director of trade and exchange at the CBN, and dated November 30, 2020.

The circular partly reads:

“Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs, for the period Monday, November 30 to Friday, December 14, 2020, is as follows: International money transfer service operators (IMTSOs) to banks – N388/$1; Banks to CBN – N399/$1; CBN to BDCs – N390/$1; BDCs to end-users not more than N392/$1.”

According to the CBN, each bureau de change (BDC) is permitted to sell only a maximum of $10,000 per market.

Figures from the financial market exchanges, on Friday, showed that the naira and dollar exchange rate depreciated to N390/$1, the lowest level since the introduction of the import & export (I&E) window in 2017.

The N392/$1 strategy could be a means the federal governemnt and the CBN is leveraging on to take Nigeria out of recession as soon as possible.

It would be recalled that the country officially slid into another recession on Saturday, November 21, the secoond since 2015 and the worst since 1987.

The National Bureau of Statistics (NBS) revealed that Nigeria officially entered into a recession after recording a contraction of 3.62 per cent in the third quarter of 2020.

However, the CBN Governor, Godwin Emefiele, on Friday, November 27, 2020, predicted that Nigeria’s economy may emerge from recession in the first quarter of 2021, while noting that an economic growth of two per cent was expected.

“With the sustained implementation of our intervention measures, we do expect that the Nigerian economy could emerge from the recession by the first quarter of 2021,” Emefiele said.

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