Due to the rise of COVID-19 pandemic that has taken its toll on the global economy and fall in oil prices, the Cenral Bank of Nigeria, CBN has allowed the exchange rate at the Investor/Exporter window to reflect market realities.
This was made known by CBN Director, Trade and Exchange Department, Dr. O.S. Nnaji on Friday.
In a communique to all banks and Bureau De Change, the CBN advised that the BDC to end-user sales of the Dollar should not be more than N380/1USD.
The move is expected to sustain foreign portfolio investors’ interest in Nigeria’s financial instruments. Nigeria like other countries mainly dependent on crude oil to fund expenditures have been under tremendous pressure since the price of the commodity crashed from $67pb to about $27pb.
The central bank in a press release last week said that the “market fundamentals do not support Naira devaluation at this time” detailing reasons why it did not need to devalue. Having sold at N380 at the I&E window the CBN has officially accepted the exchange rate has now depreciated officially in line with a drop in oil price.
