Naira and Dollar

Adebayo Obajemu

Information on the website of the Central Bank of Nigeria shows the CBN has adjusted upwards the official exchange rate to N380/$1 from N360.1/$1. The adjustment occurred on Thursday August 6th 2020.

This implies that the apex bank may have unified the exchange rate in line with the promise made by Godwin Emefiele, the Governor of the Central Bank of Nigeria.

Current (Previous)

Buy- N379 (N360)

Central – N379.5 (N360.5)

Sell – N380 (N360.1)

The apex bank did not issue any official press releases explaining the reason for the devaluation or adjustment as the Central Bank likes to call it. This is now the second devaluation of the official exchange rate after the rate was adjusted from N307 to N361 on the 20th of March 2020. The CBN has also adjusted the exchange rate for the SMIS window.

In June, the CBN Governor Godwin Emefiele assured investors in June that the CBN will unify the exchange rate aroundthe NAFEX rate in line with the conditions of the world bank.

“We will continue to pursue unification around the NAFEX Market”.  Emefiele

Note that it has taken much longer than required and may have resulted in the postponement of a planned world bank meeting where an approval of the initial $3 billion loan from the world bank would have been obtained in September and October for the Federal and State Governments respectively.

One of the conditions for the disbursement of the loan was a unification of the exchange rate which most analysts believe the CBN has dithered on for months.