The Central Bank of Nigeria (CBN) has officially devalued the naira or “adjusted” the official rate of the naira as the apex banks likes to call it. The CBN adjusted the official exchange rate of naira against the dollar on its website to N379.00 per dollar from N360.00 per dollar previously stated.
This is coming two months after the Apex Bank’s Governor, Godwin Emefiele disclosed, that the bank is working towards unification of the exchange rate around the NAFEX rate. “We will continue to pursue unification around the NAFEX Market” Emefiele said in June.
The CBN did not issue any official explanation regarding the change in the official exchange rate on its website, which took effect from 6 August 2020. However, recall that Investogist has reported severally that following the rate unification disclosure in June, the official rate at FMDQ stood at N381.00 per dollar on its website, whereas the official rate remained at N360.00 per dollar on CBN website.
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According to CBN data seen by Investogist, U.S Dollar was quoted as follows on Friday 7 August 2020;
- Buying – N379.00
- Central – N379.50
- Selling – N380.00
This is the second time the Central Bank is adjusting the value of naira this year, following the crash in oil prices as a result of Covid-19 pandemic. In March, CBN “technically adjusted” naira exchange rate, which saw the Investors’ & Exporters’ Window rate move from N360/$1 to N380.2/$1, while the official exchange rate moved from N306/$1 to N360/$1.
Naira has been under immense pressure following the oil crisis, as oil revenue contributes majority of Nigeria foreign exchange. On Friday the exchange rate of naira at the I & E Window closed at N386.00 per dollar while at the parallel market, it exchanged at N475 per dollar.