The Central Bank of Nigeria (CBN) has adjusted the exchange rate Bureau De Change (BDC) operators are to sell the United States dollars to end-users to N392 to a dollar, lower than the N386 to the dollar it was previously.
On the other hand, BDCs are now to purchase the greenback from the CBN at the rate of N390 to a dollar, lower than the N384 to a dollar it was previously.
The CBN stated this in its circular titled: ‘Weekly Exchange Rate for Disbursement of Proceeds of International Money Transfer Service Operators,’ that was signed by its Director, Trade and Exchange Department, Dr. Ozoemena Nnaji.
Also, it stated that while International Money Transfer Service Operators (IMTSOs) are to sell the greenback to banks at the exchange rate of N388 to a dollar; banks are to sell to CBN at N389 to a dollar; and BDCs are expected
According to the circular, the exchange rate for the disbursement of proceeds of IMTOs would be for the period Monday, November 30, 2020, to Friday, December 4, 2020.
“Kindly note that the GBP rate should be derived from the USD cross rate on the date of sale,” it stated.
CBN Governor, Mr. Godwin Emefiele, last Tuesday, stressed that the parallel market cannot be used to determine the true value of the country’s currency.
He emphasised that the value of the naira can only be determined by forces of demand and supply, insisting that the parallel market rate is mainly for illicit activities and for persons using the dollar for bribery.
Describing the black market as tainted, he said it only accounts for five per cent of total foreign exchange market share and can’t determine the worth of the naira.
Reacting to questions from journalists during the MPC meeting that the naira may currently be overvalued according to some analysts, Emefiele expressed disappointment that analysts who ought to know chose to mislead Nigerians.