Sunday, January 17, 2021

CBN devalues naira by N6 in move to unify exchange rates

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The Central Bank of Nigeria (CBN) has devalued the naira by N6 to dollar.

The naira devaluation has brought the local currency closer to the exchange rate unification agenda of the apex bank as recommended by the International Monetary Fund (IMF) and World Bank.

In a weekly exchange rate for disbursement of proceeds of International Money Transfer Service Operators (IMTOs) for November 30, 2020, all authorized dealers, Bureau De Change (BDC) Operators and Service Providers were advised to add N6 across all rates.

The new rates pegged IMTOs sale of dollar to banks at N388 to dollar, higher than previous rate of N382 to dollar; banks sale of dollar to CBN at N389 to dollar, as against previous rate of N383 to dollar.

Also, CBN sale of dollar to BDCs was pegged at N390 to dollar, as against previous rate of N384 to dollar.

The apex bank however retained policy authorizing each BDC to buy $10,000 weekly as it directed that the Great Britain Pounds (GBP) rate should be derived from the US Dollar across rate on the date of sale.