Economy
Naira Collapses Further, Exchanges for 504/$ at Parallel Market
- The CBN also divulged plans to increase the amount of foreign exchange allocated to banks to meet legitimate needs.
On Friday, the Bureau De Change disclosed that the naira exchanged to the dollar at N504 at the parallel market.
A month earlier, the dollar was at N490 but had recently moved to N500 as of last week.
Naijabdcs.com, Central Bank of Nigeria’s official rate for the BDCs said the dollar was bought and sold at the rate of N503 and 504 as of Friday evening.
In May 2021, the CBN recognized the NAFEX Investor & Exporter forex window rate of N410.25 as its official exchange rate to the dollar.
The reason for this was to increase liquidity in the forex market and to guarantee prompt execution as well as payment for eligible transactions.
Recall that in April of 2017, the I&E forex window was established by the CBN. This was done as part of its efforts to deepen the foreign exchange market and accommodate all forex obligations.
The CBN also divulged plans to increase the amount of foreign exchange allocated to banks to meet legitimate needs.
CBN Governor, Mr Godwin Emefiele had warned Deposit Money Banks to stop denying customers the opportunity to purchase foreign exchange.
Naira
The purposes of access forex included Personal Travel Allowance, Basic Travel Allowance, tuition fees, and medical payments as well as Small and Medium Enterprises transactions or for the repatriation of Foreign Direct Investment proceeds, the CBN had stated.
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Thus, under the new scheme, Nigerians travelling abroad could access a maximum amount of $4,000 foreign exchange from the banks, while those travelling on business trips could also access a maximum amount of $5,000 for each trip.
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