The Central Bank of Nigeria, yesterday
being on Tuesday adjusted the value of the naira to exchange to the dollar at
N381, as parts of measures to converge the nation’s multiple exchange rates and
ensure stability.
being on Tuesday adjusted the value of the naira to exchange to the dollar at
N381, as parts of measures to converge the nation’s multiple exchange rates and
ensure stability.
Even though the CBN has not officially
made its position known, data obtained on the website of FMDQ OTC Securities
Exchange on the CBN official rate showed a 5.54 percent change from N360/$ to
N381/$.
made its position known, data obtained on the website of FMDQ OTC Securities
Exchange on the CBN official rate showed a 5.54 percent change from N360/$ to
N381/$.
FMDQ Securities, registered by the
Securities and Exchange Commission, was put in place to create an efficient
platform for the registration, listing, quotation, trading and reporting of
securities and financial products.
Securities and Exchange Commission, was put in place to create an efficient
platform for the registration, listing, quotation, trading and reporting of
securities and financial products.
On Tuesday, the dollar was quoted at
N380.69k at the Secondary Market Intervention Sales (SMIS), where importers
access foreign currencies. The new rate is believed to be in line with the apex
bank’s efforts to unify the exchange rate as the foreign exchange spot.
N380.69k at the Secondary Market Intervention Sales (SMIS), where importers
access foreign currencies. The new rate is believed to be in line with the apex
bank’s efforts to unify the exchange rate as the foreign exchange spot.
Oil revenue contribution to the
Nigerian economy should get a minor boost from the devaluation of the official
rate, Omotola Abimbola, an analyst at Lagos-based Chapel Hill Denham, said in a
post on Twitter.
Nigerian economy should get a minor boost from the devaluation of the official
rate, Omotola Abimbola, an analyst at Lagos-based Chapel Hill Denham, said in a
post on Twitter.
“Now, CBN has to unshackle the I&E
window, and maybe we can put this FX liquidity problem behind us,” Mr Abimbola
wrote.
window, and maybe we can put this FX liquidity problem behind us,” Mr Abimbola
wrote.
In March, the CBN had adjusted the
official exchange rate to N360/$ from N307/$ and abolished the N325 and N330
concessionary rates.
official exchange rate to N360/$ from N307/$ and abolished the N325 and N330
concessionary rates.
Godwin Emefiele, the apex bank
governor, recently explained that the bank is making efforts towards a
unification of the multiple exchange rates.
governor, recently explained that the bank is making efforts towards a
unification of the multiple exchange rates.
“What we mean by exchange rate
unification is moving towards the NAFEX,” he said.
unification is moving towards the NAFEX,” he said.
“NAFEX is our dominant market for the
purchase and sale of forex and it is a free market where everybody is free to
sell their dollars and those who want to buy are free to buy dollars,” he said
at the meeting.
purchase and sale of forex and it is a free market where everybody is free to
sell their dollars and those who want to buy are free to buy dollars,” he said
at the meeting.
“That means that whether you are a
businessman, a bank, CBN, and you have dollars, you can bring it to the market
to sell and if you want to buy dollars, you can come to the market.
businessman, a bank, CBN, and you have dollars, you can bring it to the market
to sell and if you want to buy dollars, you can come to the market.
“Like some of you must have seen,
three years before 2019, we saw a relatively stable forex market because the
NAFEX rate and even the rate at which the central bank transacts business
outside the NAFEX were substantially close to each other. So, the CBN will
continue to pursue unification around the NAFEX.”
three years before 2019, we saw a relatively stable forex market because the
NAFEX rate and even the rate at which the central bank transacts business
outside the NAFEX were substantially close to each other. So, the CBN will
continue to pursue unification around the NAFEX.”
On his part, Ayodeji Ebo, managing
director of Afrinvest Securities Limited, described the move as positive,
adding that what’s left as a “final lap” is the improvement in liquidity at the
I&E window to complement the CBN’s efforts towards a stable naira.
director of Afrinvest Securities Limited, described the move as positive,
adding that what’s left as a “final lap” is the improvement in liquidity at the
I&E window to complement the CBN’s efforts towards a stable naira.
