Naira Falls to 500 Per Dollar as CBN Weakens Rate

By Sahabi Abdul

Nigeria’s naira exchanged for 500 to a dollar on Monday as the central bank began implementing weaker rates for international money transfers and sales to exchange bureaus.

For money transfers, such as Western Union and Money Gram, are to exchange transfers at 388 naira to a dollar against 382 naira previously.  Banks are now required to sell to the central bank at 389 naira from previous 383 naira.

Sales by the central bank to exchange bureaus will be at 390 naira  a dollar, up from 384 naira; exchange bureaus are now required to sell to end users at 392 naira per dollar and will continue to receive 10,000 dollars weekly from the central bank.

The current rates will cover the period between 30 November and 4 December,  according to the circular signed by O.S. Nnaji, CBN’s director of trade and exchange. Rates for other foreign currencies are to be derived from the dollar rate, according to the circular.

The latest rates represent the third time the CBN is devaluing the country’s currency this year. Pressure mounted on the value of the currency after the coronavirus pandemic slowed the global economy and weakened demand for oil, Nigeria‚Äôs main export and source of more than 90 percent of its foreign-exchange income.