The Central Bank of Nigeria (CBN) has instructed bureau de change (BDC) operators in the country to review the foreign exchange upwards to N380 against the dollar.
The CBN in a circular issued on Friday noted that it was no longer visible to the dollar to be exchanged at N360 as the country’s dollar inflow continues to dry up on the back of declining oil price.
The apex bank had last week stated that it had no plan to devalue the naira, saying with Nigeria’s external reserves still above $35 billion, it had the capacity to continue to defend the local currency.
Meanwhile, crude oil has declined below $30 per barrel, its lowest in over 18 years, mounting serious pressure on the naira as Nigerian gets over 90 per cent its dollar inflow from crude oil sales.
The naira depreciated against the dollar by N1.65k to close at N372.00/$ at the Investors and Exporters (I&E) foreign exchange window as investors exchanged a total of $505.73 million.
At the parallel market, cash rates depreciated by N1 to close at N376.00/$, while the transfer rate remained unchanged at N400.00/$.
At the Interbank, the Naira/USD spot and SMIS rates remained stable to close the week at N307.00/$ and N358.51/$ respectively.