The Central Bank of Nigeria (CBN) has ordered Bureau De Change (BDC) operators in Nigeria to trade dollars at ₦392 to end-users.
The directive was given in a circular signed by O.S. Nnaji, director of trade and exchange at the CBN, and dated November 30, 2020.
“Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs, for the period Monday, November 30 to Friday, December 14, 2020, is as follows: International money transfer service operators (IMTSOs) to banks – ₦388/$1; Banks to CBN – ₦399/$1; CBN to BDCs – ₦390/$1; BDCs to end-users not more than ₦392/$1,” it read.
The CBN stated that the volume of sales for each market is $10,000 per bureau de change (BDC).
At the close of trading on Friday, figures from the financial market dealers exchange over the counter (FMDQ) NAFEX, an official market where the exchange rate is traded, also show that the exchange rate between the naira and dollar has depreciated to N390/$1 — lowest level since the introduction of the import & export (I&E) window in 2017
Recall that Nigeria on Saturday, November 21, officially went into recession for the second time under President Buhari‘s administration, but this time, the worst since 1987.
Figures released by the National Bureau of Statistics (NBS) reveal that Nigeria is officially in a recession, with the West African country recording a contraction of 3.62 per cent in the third quarter of 2020.
This online news platform understands that the development shows that this is the second consecutive quarterly GDP decline since Nigeria’s 2016 recession. The cumulative GDP for the first nine months of 2020, therefore, stood at -2.48 per cent.