Why CBN ‘Technically’ devalued the naira

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Yesterday, we reported that the  Central Bank technically devalued the naira to exchange to the dollar at N380.

According to various reports, the decision was made after all other interventions to sustain the exchange rate of 360 had failed.

The CBN said in a circular that it had merged the rates at both the Bureau de change and import & Export window at N380.

The CBN will now make the dollar available to the BDCs at N378, which will be sold at M380.

Speaking to Punch, the President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said the merger of the different rates became necessary to build confidence in the sector.

He said this latest move would make it hard for those dealing in underhanded operations and speculators to be profitable.

He also said it was wrong for operators to buy dollar at below N360 and sell between 370 and 375.

 

 

 

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