CBN Devalues Naira By 15% Against Dollar

There are strong indications on Friday evening that the Central Bank of Nigeria has devalued the Naira  against the dollar by 15 percent on the official market from N306 to N360.

Sources told THE WHISTLER that the bank took the decision due to the sharp drop in crude oil prices and the falling external reserves and that the plan had been in the pipeline for over a week.

The reserves had dropped by $1.9 billion between February 3 and March 19, from N37.9 billion toN35.9 billion.

Efforts to get CBN officials to confirm the story on Friday evening proved abortive as the bank’s spokesmen refused to comment.

Meanwhile, Reuters on Friday reported that the CBN sold dollar to Jaiz Bank on the official currency market at N360, rather than the official rate of N306.

 JP Morgan had said last week that the Naira should have been devalued by around 10% to N400 per dollar by the end of June, considering the pressure on the economy due to fall in oil price.

 On the FX rate to investors, on Friday, the bank sold N380.2 per dollar against N366.7/$. Nigeria operates a multiple exchange rate system that helped manage pressure on the Naira.    

Confirming the development, the bank adjusted the official rates on its website as of from N306 to N360 per dollar.

The CBN has also directed the Bureau De Change to sell its FX at N380 against the dollar.

Adhering to the directive, AbokiFX confirms that the bureaus across the country had adjusted to the new rates, increasing from N375 in the early hours of Friday March 20 to N380 in the late hours of the same day.