Rates unification closer as CBN adjusts spot rate to N379/$

The Central Bank of Nigeria (CBN) has adjusted the spot exchange rate displayed on its website to N379 against the dollar from N361.

This signals another step towards the unification of the exchange rates used in the country.

The rate now displayed on the CBN website is closer to the N381/$ being traded on the secondary market intervention sales (SMIS) window.

The SMIS is the market where importers bid for forex using letters of credit and Form M.

In a letter to the International Monetary Fund, the federal government had said it would work towards “full exchange rate unification and greater exchange rate flexibility” to help preserve foreign exchange reserves and avoid economic dislocation.

In March, the CBN had adjusted the official exchange rate to N360/$ from N307/$ and abolished the N325 and N33o concessionary rates.

The naira closed at N386 to the dollar at the investors and exporters window (I&E) on Friday.

At the BDC cash market, the naira now exchanges at N473/$.

With subdued oil revenues, the adjustment would help boost funds available to the federation accounts allocation committee for disbursement to the three tiers of government.

The country has operated different exchange rates since the 2016 recession with the official rate set at N307/$ and Bureau de Change rate at N360/$.