Devaluation? Naira trades at N380/$ on I&E window

The naira traded at N380 to the dollar on Friday at the Investors and Exporters window.

This comes after the Central Bank of Nigeria (CBN) announced that the current market fundamentals do not support devaluation of the naira.

The I&E window was created by the apex bank in 2017 to make forex available to businesses after the 2016 recession.

TheCable gathered that although the CBN has not devalued the naira, it allowed the currency “mirror developments in the market-determined I&E window”.

After crude oil prices crashed to $30 per barrel, demand for dollars in the Bureau de Change segment of the market increased resulting in a depreciation of the naira.

At the time, the naira traded at N410 to the dollar.

In reaction, the CBN had said development was a result of the activities of market speculators.

It said the demand was not justified as factories in China and Europe had shut down as a result of the coronavirus outbreak.

On Thursday, TheCable gathered that BDC operators in the country refused to display prices out of fear.

The CBN had said it would partner with the Nigerian Financial Intelligence Unit (NFIU) to charge dealers involved in speculative activities with economic sabotage.

To deal with the oil price crash, the federal government said it would cut the 2020 budget by N1.5 trillion and set oil budget benchmark at $30.

The CBN is also convening an emergency bankers committee meeting on Saturday to seek ways to protect the banking system.

Meanwhile, the CBN announced a N1.1 trillion injection into the economy to protect it from shocks caused by the coronavirus outbreak.