Devaluation: CBN Sells Dollars at N380.2/$ to Foreign Investors

• Devaluation: CBN Sells Dollars at N380.2/$ to Foreign Investors

There are reports that the Central Bank of Nigeria (CBN) exchanged the US dollar to Naira at N380.2 on Friday, according to information available on the Bloomberg terminal quoted by BusinessDay.

An expert was reported to have said the apex bank sold the US dollar at N380.2 on the Investors & Exporters’ foreign exchange window to Foreign Portfolio Investors (FPI) on Friday.

This may not be unconnected to the falling foreign reserves that plunged to 29 months low of $35.9 billion this week due to low oil prices and the inability of the Federal Government to sell Nigerian oil despite huge discounts.

While the official rate is still N306 to a US dollar, BusinessDay said it expects the apex bank to make an official announcement on the adjustment by Tuesday next week.

Last week, the central bank attacked analysts projecting devaluation and called them enemies of the nation while insisting that current macro fundamentals do not indicate devaluation.

That was despite oil price trading at an 18-year low of $24.96 per barrel, the inflation rate rising to a 21-month high of 12.2 percent in February and foreign revenue generation declining with fast-spreading coronavirus.

JPMorgan had projected a 10 percent devaluation to N400 per US dollar from the current level of N360 by at least the second quarter of the year if prices remain between $30 to $40 per barrel.