The devaluation came 48 hours after President Bola Ahmed Tinubu announced the plans of the federal government to unify the country’s exchange rate to stimulate the economy.


In his inaugural speech, minutes after he was inaugurated as the 16th president of the country, Tinubu said, “Monetary policy needs a thorough house cleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.”

There has been a wide margin between the I&E window and the parallel market, a situation that experts say encouraged round-tripping with Bureau de Change operators.


The speech President Tinubu did not read

Stock market gains N1.51trn after Tinubu’s inauguration

The situation has seen the CBN devise several measures to check the practice as well as completely stop the sale of forex to BDCs.


On Tuesday, President Tinubu met with the top echelon of strategic institutions including the CBN Governor, Godwin Emefiele, at the presidential villa.

At the end of the meeting, neither the presidency nor Emefiele disclosed the outcome of the briefing. It was, however, gathered that the issue of the exchange rate was discussed at the meeting.

The President also met with the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari. The removal of petrol subsidy was discussed, it was gathered.

Daily Trust finding, however, revealed that at the resumption of the weekly bidding for foreign exchange, the apex bank sold the spot rate to banks on behalf of their customers at N631 to a dollar and most bidders got the full amount they requested.

One of the customers told this paper that they applied and that their request was fully granted at N631 as against N461.6.

The move has also seen prices at the parallel market trend downwards. Checks by this paper revealed that prices dropped from N750 to a dollar in the early hours of yesterday to N745 by evening in Abuja and Kano respectively.

The naira weakened in the parallel market to the lowest level in a year on expectations of a possible change in exchange rate management after Tinubu takes office on Monday.

The naira dropped to N762 a dollar on Friday from 775 the previous day in the unauthorized market in Lagos, said Umar Salisu, a BDC operator who tracks the data in the nation’s commercial capital.

The unit has weakened steadily in the parallel market since last week after stabilizing for most of this year.

The market arbitrage (difference between the official and parallel markets) has widened in the past three years from N100 per dollar or about 30 per cent in 2020 to over N400 per dollar (above 100 per cent) sometime last year when the black market rate spiked to N880/$.

Development institutions, including the International Monetary Fund (IMF), are wary of exchange rate differential in excess of five per cent and warn that such could trigger unhealthy manipulation that could negatively affect other efforts on market stabilisation.

From 2020 to 2022, the CBN spent about $42 billion intervening in the foreign exchange market to stabilise the naira. The amount was sold to the end-users, including students and tourists, at the official rates, which are way off the effective exchange rate of the naira.

According to the Financial Stability Report, a publication of the CBN, the apex bank sold $9.2 billion in the market in the first half of last year.

The full data for the second half are not available, but the annualised value is assumed to have surpassed that, especially with the level of social and economic activities associated with the second half.

Whereas the black market rate averaged N730/$, the I&E window finished at suppressed N447/$ on average. That puts the arbitrage at N283/$, pushing the CBN’s FX subsidy in the year to about N3.65 trillion.


https://dailytrust.com/exclusive-cbn-devalues-naira-to-630-1/

Emefiele's juju man must be very powerful. His jazz worked well on Buhari, now it's working on President Agbado

Thats what happens when you borrow money, buhari is a goat

We black marketers were always right. The true value should be 740 as seen on Binance.

Let’s make it 1000 so that we can achieve a round figure.

President BAT replace Emefiele now, take him to another insensitive sector, for allowing himself to be used by Oga bubu, to suffer and impoverish nigerians, through the so-called naira-swap policy.
CBN is too sensitive for Emefiele to handle.

TINUBU PLEASE REMOVE EMEFIELE BEFORE HE DESTROYS NIGERIA COMPLETELY.

Is that what he discussed with Tinubu?

Tinubu supporters are already here to blame emefile again

Shey na emefile con dey hold una down again

Ruling government playing opposition to itself

kenny714433:



We black marketers were always right. The true value should be 740 as seen on Binance.

Let’s make it 1000 so that we can achieve a round figure.

Lol wetin don dey 725 for Binance right now if u dey keep Cryptoo na time for ur loss dey knock like this....

inoki247:



Lol wetin don dey 725 for Binance right now if u dey keep Cryptoo na time for ur loss dey knock like this....

Na true o 😂
Just checked. Nevertheless, I prefer to hold in $ than #.
It will get to #800 soon 😂

kenny714433:



Na true o 😂
Just checked. Nevertheless, I prefer to hold in $ than #.
It will get to #800 soon 😂

Lol for where jus dey play u soon count your blessing and add loss to it ...

At 715 right now na per Seconds he dey crash....

kenny714433:



We black marketers were always right. The true value should be 740 as seen on Binance.

Let’s make it 1000 so that we can achieve a round figure.

how can u buy my $20, it cash.

The bommerang effect of bad policies.

Removing subsidy in one go will always be catastrophic.

It was even reported that the subsidy removal was not in the written speech of Tinubu.

Baba dey show himself

inoki247:



Lol for where jus dey play u soon count your blessing and add loss to it ...

At 715 right now na per Seconds he dey crash....

If this is joke, stop it o 😂
The least naira can get is #600 and that would still be a good option. Maybe it's even temporary gaining as it may crash back to #800 like a pregnant cow trying to fly 🤣

Brownshoe:
how can u buy my $20, it cash.

How can you ask a complete stranger to buy you crypto? This space got the highest number of scammers so be careful. You can use numerous payment options provided by Binance to buy crypto. You can even buy using P2P option.