The Central Bank of Nigeria may have stylishly and technically devalued the naira to exchange to the dollar at N380.
The apex bank took this decision after all interventions in the market, such as imposing sanctions on errant operators and use of moral suasion to curb illegal forex operations did not sustain the exchange rate of N360.
In a circular to the operators in the sector, the CBN merged the rates at both the Bureau De Change rate and Import & Export window at N380. Under the new dispensation, the CBN would make the dollar available to the BDCs at N378, which would be sold at N380.
The President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said the merger of the different rates became necessary to build confidence in the sector.
He said this would make it impossible for those dealing in illegal operations and speculators to be profitable as we are to be buying at N378 and sell at N380,”
He also said the rise in the exchange rate was not due to genuine demand because people were not really travelling or importing goods. “The situation cannot remain like this; things will improve. If coronavirus goes, we will get over it,”
Recall that last week an exclusive investigation by Eastwestreporters revealed that the naira exchanged between N405 and N420 to a dollar in the open market at presidential hotel axis in port Harcourt.
The sharp rise in the exchange rate was attributed to the crude oil price which fell drastically in the international market and these raised speculations among the Bureau D’Change operators and Nigerians in general.