Speculations started March 12 that the naira might be devalued. By Collins Nweze. With the new rate, the CBN has effectively collapsed the multiple exchange rate policy used in determining the value of the Naira for 5 years now. Catch all the Scoop on www.bellanaija.com Published. Instagram: @bellanaijaonline, Your email address will not be published. End users get N392/$1 as per the instructions from the CBN. 1. International Money Transfer Operators – banks, N388/$1. COVID-19, VAT increase, naira devaluation spur rise in prices of consumables. AFDB To Provide Dangote Industries $300mn Corporate Loan, Non-Oil Sector in Nigeria – Finance, IT, Agriculture – Takes Q3 2020 GDP. The apex bank had earlier moved the … Generally, a devaluation will likely lead to inflation because of higher import prices and rising demand for exports. READ ALSO: CBN flays those using Parallel market to push for Naira devaluation The front line labour leader described currency devaluation in a … A devaluation leads to a decline in the value of a currency, making exports more competitive and imports more expensive. CBN denies Naira devaluation - TheCitizen - It's all about you This will most likely get it the $1.5 billion loan request from the World Bank and $3.4 billion loans which it seeks from the IMF. Speculators and those with dollar savings – Some people are quite good with speculating and some have started accumulating dollar in anticipation of a possible devaluation. 20 February 2020 | 4:17 am Share on Facebook Share on Twitter Share on Google+ Share on … How much money do bloggers in Nigeria make and how do they earn? March 12, 2020, 1:00 AM EDT Updated on March 12, 2020, 5:46 AM EDT 3:19. The people that will benefit from this new development: Companies that earn in dollars – There will also be a windfall for most firms such as lawyers, accountants, consulting firms, financial advisers, etc. Also, the rate by CBN to Bureau de change operators will be N378 per dollar, while BDCs to end-users will be N380 per dollar and the volume of sales for each market is $20,000 per BDC. According to Punch, the Naira has being under pressure after oil prices have crashed further to below $24 per barrel, way below the government’s approved Benchmark price of $57 per barrel in the 2020 budget, as a result of the impact of the coronavirus pandemic on the global economy. Naira Devaluation As False Economics - LEADERSHIP. The CBN in a circular – which proved a second devaluation of the naira – instructed forex dealers to sell to end-users at N386/$1. (Q!, 2020). Nigeria’s forex devaluation timeline – 2020 - NAIRAMETRICS. A new report has revealed that naira devaluation is unlikely in 2020 despite it being nine percent overvalued and a deteriorating external position. NAIRA: Basing devaluation on parallel market rate wrong — CBN. Facebook: @bellanaija The country will now have a single exchange rate for official transactions and bureau de change operators as well as for importers and exporters of goods and services. The proposed devaluation of the Naira came into force on Friday. Naira notes. The devaluation of the naira against global currencies will impact negatively on foreign currency loans and weaken capital base for the lenders, banking sector report has shown. Nigeria Naira Devaluation Likely Soon on Oil Price Slump By . Mr. President, it … They mostly charge dollars and come year-end most of their tenants will renew. The Central Bank of Nigeria may have devalued the naira by as much as 15 percent with the introduction of a single exchange rate. BellaNaija is not responsible for the content of external sites and news culled therefrom. The report by analysts at Renaissance Capital (RenCap), one of the leading emerging and frontier markets focused investment banks, has also shown that the Central Bank of Nigeria (CBN) has enough foreign […] Analysts at United Capital see the CBN harmonising the naira rates rather than devaluation … “The recent history of the Naira/US dollar exchange rate shows that 20 per cent over-valuation of the Naira, in terms of fair value, is associated with devaluation. A new report has revealed that naira devaluation is unlikely in 2020 despite it being nine per cent overvalued and a deteriorating external position. Dr O.S. Naomi Campbell is Magical Kenya International Tourism Ambassador, Wole Soyinka airs his view on the state of Nigeria in a characteristic unapologetic manner on Arise TV, New Music: Double D O’clock - Wotz De Time. Michael Owhoko. Market Unfavourable for Naira Devaluation — CBN March 13, 2020 0 Comments In a statement by the Director, Corporate Communications, Mr. Isaac Okorafor in Abuja on Friday, the Central Bank of Nigeria (CBN) says market fundamentals do not support Naira devaluation this time around. The fact is the country has major revenue issues and the artificial measures to prop up the Naira will definitely wear out. This site uses Akismet to reduce spam. The exchange rate at the parallel market according to AbokiFX this Monday morning is N490/1. The apex bank had earlier moved the official rate to N360 to dollar from N307 to dollar. Virtually all the CBN governors between 1982 and 2020 have devalued the Naira. Nigeria’s Monetary Policy Rate Remains At 11.5% – CBN, Plane Ticket Prices For Lagos, Abuja Closing N100,000 In December. Previously, the regulator had revised the exchange rate from 307 Naira to the dollar to 360 in March. The PayTV said then that from August 1, 2020… ICYMI: Merriam Webster’s Word of the Year 2020 is “Pandemic”! What does the Chief of Staff to Buhari do, is a new appointment important? Required fields are marked *. Troops, Here's How You Can Watch Joe Biden & Kamala Harris' Inauguration, Uganda's President Yoweri Museveni wins the Election for the Sixth Term, Donald Trump Impeached for a Second Time by House of Representatives | Here’s All You Need to Know, So Major! People who earn salary in dollars – Some Nigerians earn their salaries in dollars even though they live in Nigeria. At the current rate, the local currency has lost N140 per US dollar when compared with N360 it was sold in the same month of 2019 […] Experts allay fear of naira devaluation in 2020. BDC operator will get dollars from the CBN at N390/$1 and each is entitled to $10,000 weekly. However, while the immediate effects of currency devaluation are theoretically positive, the reality is far less positive in absolute and relative terms. Henceforth, dollars sold to banks will be at the rate of N376 per dollar, while banks to CBN will be at N377 per dollar. A large and rapid devaluation may scare off international investors. This is a timeline of every decision taken since the first devaluation. CBN’s Devaluation of the Naira: Here’s What it Could Mean for You. JPMorgan Projects 10% Naira Devaluation by Q2, 2020 Analysts from global investment bank JPMorgan on Wednesday predicted that the Central Bank of Nigeria (CBN) would devalue the Nigerian Naira by 10 percent from the current N366.5 to a US dollar to N400 by June 2020 if oil price remained below $40 a barrel. The last adjustment of the naira exchange rate was on August 27, 2020. Recall that the Central Bank of Nigeria (CBN) last week denied that there was no plan for the devaluation of Naira.. Naira to United States Dollar exchange rate plunged to N500 on Monday after the Central Bank of Nigeria (CBN) devalued the Naira by N6 on Friday amid growing scarcity. Some of them charge their fees in dollars and should expect their profits to be higher when they translate their bank account to naira. Ayomide Mejabi, […] The FMDQOTC NAFEX market website has now confirmed that the naira official exchange rate has been devalued again to N390/$1 in November. JANUARY 01, 2021 . In July 2020, the Central Bank of Nigeria further devalued the Naira by about 5.5 percent to 380 Naira to the dollar. US Dollar) has Lost Value in One Week All the … Follow us On November 25, 2020 7:53 am In Money Market by Nwafor. What to expect in 2020 Devaluation Experts have continued to stress the need for major changes with the unsustainability of CBN’s Naira defence. By Issa Aremu . Open letter to Buhari over planned naira devaluation. How Much the Naira (vs. After decades long of word counts and verbal exchanges on Naira devaluation and “oil subsidy removal”, yours sincerely is truly contestation weary on the twin policy issues. CBN is looking to accomplish forex unification demands from the International Monetary Fund (IMF) and the World Bank. Confirmed Cases of the Coronavirus up to 26 | Here’s an Update on All that’s Happening, These Women Are Representing Nigeria in Water Sports at the 2020 Olympics, Living & Celebrating the African Dream! Nnaji, Director of Trade and Exchange, CBN signed the circular which says the new rate caps the period Monday, November 30 to Friday, December 14, 2020. CBN's Devaluation of the Naira: Here's What it Could Mean for You, U.S President Joe Biden Lifts Entry Ban on Nigeria | Check Out Some of the Executive Orders Signed on His First Day, 5 Major Highlights from President Joe Biden & Vice President Kamala Harris' Inauguration, ICYMI: Watch the Farewell Address from Donald & Melania Trump + Mike Pence's Remarks to U.S. Some Real Estate companies with luxury apartments in high brow areas of the country will also reap immensely from this devaluation. “The recent history of the Naira/US dollar exchange rate shows that 20 per cent over-valuation of the Naira, in terms of fair value, is associated with devaluation. Tweet on Twitter. The report by analysts at Renaissance Capital (RenCap), one of the leading emerging and frontier markets focused investment banks, … Content creator focusing on finance and business with five years of experience and a foundation in forex analysis. We use cookies to ensure that we give you the best experience on our website. After decades long of word counts and verbal exchanges on Naira devaluation and “oil subsidy removal”, yours sincerely is truly contestation weary on the twin policy issues. So if inflation arises due to this devaluation, it will give them a huge advantage over those who earn in naira. Your email address will not be published. The same goes for those who are used to saving in dollars. On Friday 20 March 2020, the CBN technically readjusted the FX sales rate of the Naira to N380.20/$1.00 from N366.70/$1.00 at the importers and exporters window (which is in effect a devaluation of the naira). Now that it has been devalued, they can exchange that money to naira and post good profits. 0 41. February 27, 2020. ... November 11, 2020. A quick check on the CBN website as at Friday, November 20, showed that the official exchange rate still remained at N379 to dollar. 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