Naira and Dollar banknotes (ph)

The Central Bank of Nigeria (CBN) has technically changed the exchange rate of the Naira, the national currency, against the US dollar. So therefore, in the market 1 dollar will be exchanged against 380 Naira.

A statement from the CBN sent yesterday Friday to all banks and exchange offices indicates that the sale of one dollar should not exceed 380 Naira.

The change is due to the drastic drop in the crude price of a barrel of oil which is less than 30 US dollars. This fall forced the CBN to unify the Naira exchange rate according to analysts. The Central Bank therefore merged the official rate, the rate for importers and exporters and the rate for exchange offices, among others.

Prior to this change, the CBN announced in a press release last week that “market fundamentals do not support Naira devaluation at this time.”

In view of the fall in the barrel of oil, the CBN accepted that the exchange rate should officially depreciate in line with a drop in the price of oil. She said she is working with tax authorities to mitigate the impact of the coronavirus and ensure a healthy and stable financial system.

After the unification of the exchange rate of the Naira against the dollar and the trend that is underway with the price of a barrel of oil, it is possible, according to the opinion of financial experts, that Nigeria devalues its currency in the coming months. .

Note that on Thursday, March 19, 1 dollar was exchanged against 366.7 Naira. The CBN has kept the exchange rate at around N360 for over three years. Nigeria derives more than 95% of its foreign exchange earnings from crude oil sales.