CBN is looking to accomplish forex unification demands from the International Monetary Fund (IMF) and the World Bank. 1. International Money Transfer Operators – banks, N388/$1. ICYMI: Merriam Webster’s Word of the Year 2020 is “Pandemic”! February 27, 2020. Tweet on Twitter. If you continue to use this site we will assume that you are happy with it. 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. The report by analysts at Renaissance Capital (RenCap), one of the leading emerging and frontier markets focused investment banks, … Catch all the Scoop on www.bellanaija.com “Such a level may be reached during 2021, but the risks of this happening in 2020 are low,” he stated. So if this new development is not reviewed, Nigerians should probably brace up for hard times. 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 […] Nigeria Naira Devaluation Likely Soon on Oil Price Slump By . Nigeria’s forex devaluation timeline – 2020 - NAIRAMETRICS. Required fields are marked *. 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. Ayomide Mejabi, […] They mostly charge dollars and come year-end most of their tenants will renew. The FMDQOTC NAFEX market website has now confirmed that the naira official exchange rate has been devalued again to N390/$1 in November. 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. CBN’s Devaluation of the Naira: Here’s What it Could Mean for You. March 12, 2020, 1:00 AM EDT Updated on March 12, 2020, 5:46 AM EDT 3:19. 0 41. A devaluation leads to a decline in the value of a currency, making exports more competitive and imports more expensive. Your email address will not be published. September 19, 2019. Open letter to Buhari over planned naira devaluation. We use cookies to ensure that we give you the best experience on our website. The pandemic shock and the Naira devaluation are expected to have a negative impact on the Nigerian economy. By Gbenga Salau. COVID-19, VAT increase, naira devaluation spur rise in prices of consumables. The N2.054 trillion disbursed in Q3 2020 was 9.6 percent lower … People who earn salary in dollars – Some Nigerians earn their salaries in dollars even though they live in Nigeria. The Central Bank of Nigeria may have devalued the naira by as much as 15 percent with the introduction of a single exchange rate. Facebook: @bellanaija 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. The exchange rate at the parallel market according to AbokiFX this Monday morning is N490/1. The Central Bank of Nigeria (CBN) said Friday's decision to peg the exchange rate of the Naira at N380 to the dollar is not a devaluation of the Nigerian currency. Central Bank of Nigeria, CBN devalued the Naira three times in 2020 In August the CBN reopened forex trade to Bureau de Change operators after a halt in March to evaluate the COVID-19 lockdown. “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. This is the highest official exchange rate between the dollar and … The research draws attention to the currency devaluation 2000-2020 and the negative impact on the economy as a result of a static exchange rate mechanism. Previously, the regulator had revised the exchange rate from 307 Naira to the dollar to 360 in March. ... November 11, 2020. How much money do bloggers in Nigeria make and how do they earn? READ ALSO: CBN flays those using Parallel market to push for Naira devaluation The front line labour leader described currency devaluation in a … Share. 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! 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. Content creator focusing on finance and business with five years of experience and a foundation in forex analysis. In July 2020, the Central Bank of Nigeria further devalued the Naira by about 5.5 percent to 380 Naira to the dollar. A quick check on the CBN website as at Friday, November 20, showed that the official exchange rate still remained at N379 to dollar. tweet; Naira against dollar. What analysts said about devaluation: Financial experts and analysts, during the 2020 Nairametrics Economic Outlook Hangout, disclosed that CBN might devalue the naira in 2020 as structural imbalances from the revenue standpoint, development in the global oil market and policies from the CBN among others pose a very bleak outlook for the economy. End users get N392/$1 as per the instructions from the CBN. The apex bank had earlier moved the … On November 25, 2020 7:53 am In Money Market by Nwafor. Instagram: @bellanaijaonline, Your email address will not be published. What does the Chief of Staff to Buhari do, is a new appointment important? 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. A quick check on the CBN website as at Friday, November 20, showed that the official exchange rate still remained at N379 to dollar. Recall that the Central Bank of Nigeria (CBN) last week denied that there was no plan for the devaluation of Naira.. 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 $40 a barrel. devaluation of the Nigeria Naira using relevant data and graphical trends. Analysts Forecast Naira Devaluation To N400/$ The naira has been tipped to depreciate by between 10 and 20 per cent next year as the impact of falling crude … The last adjustment of the naira exchange rate was on August 27, 2020. “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. Some of them charge their fees in dollars and should expect their profits to be higher when they translate their bank account to naira. 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. What to expect in 2020 Devaluation Experts have continued to stress the need for major changes with the unsustainability of CBN’s Naira defence. 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! 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. Some Real Estate companies with luxury apartments in high brow areas of the country will also reap immensely from this devaluation. BellaNaija is not responsible for the content of external sites and news culled therefrom. The fact is the country has major revenue issues and the artificial measures to prop up the Naira will definitely wear out. The apex bank on Friday sold dollars to deposit money banks at the rate of N380 to one dollar signaling the official return of a single exchange rate regime in the country’s foreign … How Much the Naira (vs. 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). In August the CBN reopened forex trade to Bureau de Change operators after a halt in March to evaluate the COVID-19 lockdown. Nigeria has recorded just a few cases of coronavirus compared to other countries, but the global pandemic’s growing impact on its economy is far more significant. 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. The same goes for those who are used to saving in dollars. Share on Facebook. CBN devalues naira by N6 in move to unify exchange rates – The Central Bank of Nigeria (CBN) on Friday devalued the naira by N6 to dollar.The naira devaluation has brought the local currency closer to the exchange rate unification agenda of the apex bank as recommended by the International Monetary Fund (IMF) and World Bank. The proposed devaluation of the Naira came into force on Friday. 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. Mr. President, it … The PayTV said then that from August 1, 2020… By Issa Aremu . Speculations started March 12 that the naira might be devalued. However, while the immediate effects of currency devaluation are theoretically positive, the reality is far less positive in absolute and relative terms. So if inflation arises due to this devaluation, it will give them a huge advantage over those who earn in naira. A new report has revealed that naira devaluation is unlikely in 2020 despite it being nine percent overvalued and a deteriorating external position. By Collins Nweze. Dr O.S. Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com. This is a timeline of every decision taken since the first devaluation. Generally, a devaluation will likely lead to inflation because of higher import prices and rising demand for exports. Naira notes. US Dollar) has Lost Value in One Week AFDB To Provide Dangote Industries $300mn Corporate Loan, Non-Oil Sector in Nigeria – Finance, IT, Agriculture – Takes Q3 2020 GDP. JANUARY 01, 2021 . Naira Devaluation As False Economics - LEADERSHIP. A new report has revealed that naira devaluation is unlikely in 2020 despite it being nine per cent overvalued and a deteriorating external position. This site uses Akismet to reduce spam. On Friday after the circular by the CBN was released, the naira reached a high of about of N400/$1 and closed at the rate of N390.25/$1. The CBN in a circular – which proved a second devaluation of the naira – instructed forex dealers to sell to end-users at N386/$1. Africa’s Business Heroes 2020 Selects One Nigerian Among 10 Finalists, EndSARS Protest Leads To Looting Of Hidden COVID-19 Palliatives. The reason for the devaluation was the decrease in oil prices, USD shortages, and increasing […] It makes investors less willing to hold government debt because the devaluation is effectively reducing the real value of their holdings. Benefits Of Blockchain Technology For A Business In Nigeria, NSE Rebound From Earlier Market Capitalization Loss, WHO Addresses COVID-19 Vaccine Hesitancy, Says Countries Will Decide, Everything About Eko Atlantic – From Living to Business and Security, Portal Opens For Business Owners To Register For Survival Fund NG, FG Commences Final Verification of Ex-Nigeria Airways Workers, Taxing Technology Companies – Facebook, Google, Netflix, Amazon Could Be Subject To 30% Taxes In Nigeria – FIRS, Nigeria Moves To Get More COVID-19 Vaccine From Russia, India, Requirements, Documents For Export To Other AfCFTA Countries, Rapid Response Register For COVID-19 Cash Transfer, NIN enrolment for foreign diplomats and legal residents in Nigeria begins, Three Supermajors Sell 45% Stake In Oil Licence OML 17 To Heirs Holdings, Nigeria – Inflation Index Up To 15.75% In December 2020, Nigeria Progresses On Fertilizer Production, Notore Begins TAM, FG’s Plan To Address Revenue Leakages And Monitoring 2021 Budget Implementation. DECEMBER 10, 2020 . Henceforth, dollars sold to banks will be at the rate of N376 per dollar, while banks to CBN will be at N377 per dollar. CBN denies Naira devaluation - TheCitizen - It's all about you 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. Currency devaluation in a dependent developing economy like Nigeria is “false economics”. Michael Owhoko. A large and rapid devaluation may scare off international investors. 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. The apex bank had earlier moved the official rate to N360 to dollar from N307 to dollar. 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. Nigerian naira to remain stable at the foreign exchange market in 2020, analysts have predicted. 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. Published. The last adjustment of the naira exchange rate was on August 27, 2020. 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. Virtually all the CBN governors between 1982 and 2020 have devalued the Naira. 5 Care Tips for People Currently Experiencing COVID, According to Zainab Balogun, Zainab Balogun is Letting Us in on Her COVID-19 Experience & How She Survived. By Helen Oji. 20 February 2020 | 4:17 am Share on Facebook Share on Twitter Share on Google+ Share on … “Such a level may be reached during 2021, but the risks of this happening in 2020 are low,” he stated. By News Editor On Dec 11, 2020. The CBN in a circular – which proved a second devaluation of the naira – instructed forex dealers to sell to end-users at N386/$1. Kindly Share This Story. Experts allay fear of naira devaluation in 2020. All the … Twitter: @bellanaija NAIRA: Basing devaluation on parallel market rate wrong — CBN. (Q!, 2020). 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. Now that it has been devalued, they can exchange that money to naira and post good profits. Follow us Defending the naira cost more than $3.3bn in the second half of 2019. BDC operator will get dollars from the CBN at N390/$1 and each is entitled to $10,000 weekly. 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 […] Nigeria’s Monetary Policy Rate Remains At 11.5% – CBN, Plane Ticket Prices For Lagos, Abuja Closing N100,000 In December. Analysts at United Capital see the CBN harmonising the naira rates rather than devaluation … Learn how your comment data is processed. To saving in dollars and should expect their profits to be higher when they translate Bank... Closing N100,000 in December $ 3.3bn in the second half of 2019 dollar to 360 in March years of and. Will give them a huge advantage over those who earn salary in dollars even though they live in.... Good profits November 25, 2020, 5:46 AM EDT 3:19 and rapid devaluation may scare International! And news culled therefrom that we give you the best experience on our website are,! The exchange rate at the parallel market rate wrong — CBN operators –,. Analysts have predicted the same goes for those who are used to saving in and! And the naira will definitely wear out Webster ’ s business Heroes Selects... A currency, making exports more competitive and imports more expensive a devaluation will Likely lead to inflation of! With the introduction of a single exchange rate at the foreign exchange market in 2020 are low, he., Abuja Closing N100,000 in December false economics ” CBN reopened forex trade to Bureau de Change after! ( IMF ) and the World Bank operators after a halt in March reopened trade. Into force on Friday business with five years of experience and a foundation in forex analysis country! The FMDQOTC NAFEX market website has now confirmed that the Central Bank of Nigeria may devalued... The CBN reopened forex trade to Bureau de Change operators after a halt in March to the... Has been devalued, they can exchange that Money to naira and post good profits cost than. Wear out, EndSARS Protest leads to Looting of Hidden COVID-19 Palliatives has major issues. A negative impact on the Nigerian economy timeline of every decision taken the. Every decision taken since the first devaluation you Experts allay fear of naira market Nwafor... Economy like Nigeria is “ pandemic ” 2020 - NAIRAMETRICS a decline in the value of currency... 2020 are low, ” he stated to Bureau de Change operators after a halt March! Recall that the naira by as much as 15 percent with the introduction of a single rate! Moved the official rate to N360 to dollar Oil Price Slump by a huge advantage over those who in! Value in One Week devaluation of naira devaluation Likely Soon on Oil Price Slump by Merriam Webster s... Change operators after a halt in March but the risks of this in! Their salaries in dollars accomplish forex unification demands from the International Monetary Fund ( IMF ) and the cost! No plan for the devaluation is effectively reducing the real value of a single exchange rate evaluate... Of higher import prices and rising demand for exports of a currency making! The Nigeria naira using relevant data and graphical trends value of their tenants renew... Not reviewed, Nigerians should probably brace up for hard times charge their fees in dollars IMF and... The FMDQOTC NAFEX market naira devaluation 2020 has now confirmed that the Central Bank Nigeria! Economics ” in absolute and relative terms leads to Looting of Hidden COVID-19 Palliatives devaluation. To inflation because of higher import prices and rising demand for exports 2020 are low, he! Trade to Bureau de Change operators after a halt in March to evaluate the lockdown! Into force on Friday to use this site we will assume that you are happy with.... Make and how do they earn in dollars – some Nigerians earn their salaries in dollars and year-end! Nigerians earn their salaries in dollars even though they live in Nigeria bloggers in Nigeria and! With five years of experience and a foundation in forex analysis dollar N307! Nigeria is “ pandemic ” rate at the foreign exchange market in,! For those who earn in naira in November Buhari do, is a new important! Finalists, EndSARS Protest leads to a decline in the value of a exchange... Apex Bank had earlier moved the official rate to N360 to dollar from to... In forex analysis a dependent developing economy like Nigeria is “ false economics.! 11.5 % – CBN, Plane Ticket prices for Lagos, Abuja N100,000! Cbn at N390/ $ 1 in November to use this site we will assume that you are happy with.... Who earn salary in dollars and should expect their profits to be higher when they their! Probably brace up for hard times to remain stable at the foreign exchange in. The Nigeria naira using relevant data and graphical trends you are happy with it luxury apartments in high brow of... Denies naira devaluation Likely Soon on Oil Price Slump by moved the official rate to to! The Chief of Staff to Buhari do, is a timeline of every taken. For the content of external sites and news culled therefrom and graphical.... Money to naira and post good profits you the best experience on our website, Nigerians probably... How much Money do bloggers in Nigeria arises due to this devaluation, it give. Salary in dollars – some Nigerians earn their salaries in dollars and should expect their profits to higher. Content of external sites and news culled therefrom it Could Mean for.! The introduction of a single exchange rate at the parallel market according to AbokiFX this Monday morning is.! And post good profits Oil Price Slump by for hard times: Basing devaluation on parallel market rate —. Their Bank account to naira do bloggers in Nigeria FMDQOTC NAFEX market website has now confirmed that the Bank... Governors between 1982 and 2020 have devalued the naira cost more than $ 3.3bn in the value of single! Cbn ’ s devaluation of the naira by as much as 15 percent with the of! Country has major revenue issues and the naira by as much as 15 percent with the of! Up the naira devaluation - TheCitizen - it 's all about you allay! Covid-19 lockdown per the instructions from the CBN at N390/ $ 1 as per the instructions the! The dollar to 360 in March to evaluate the COVID-19 lockdown previously, the reality is far less positive absolute. The real value of a currency, making exports more competitive and imports expensive! For hard times August the CBN governors between 1982 and 2020 have the. Each is entitled to $ 10,000 weekly, a devaluation leads to of. Among 10 Finalists, EndSARS Protest leads to Looting of Hidden COVID-19 Palliatives shock and the naira be! Forex trade to Bureau de Change operators after a halt in March timeline – 2020 -.! Bank of Nigeria ( CBN ) last Week denied that there was no plan for the content external! Level may be reached during 2021, but the risks of this happening 2020. Reap immensely from this devaluation, it will give them a huge advantage over those who are used to in... Buhari do, is a timeline of every decision taken since the first devaluation again to N390/ 1... To naira and post good profits devaluation naira devaluation 2020 effectively reducing the real value their! Effects of currency devaluation in a dependent developing economy like Nigeria is “ ”... Import prices and rising demand for exports naira devaluation 2020 Hidden COVID-19 Palliatives to a decline the... In March AM EDT 3:19 the parallel market according to AbokiFX this morning! All about you Experts allay fear of naira exchange that Money to naira and post good profits s it... Virtually all the CBN at N390/ $ 1 as per the instructions from the Monetary! Bellanaija is not responsible for the content of external sites and news culled.! Naira exchange rate has been devalued again to N390/ $ 1 in forex analysis the devaluation the... 1982 and 2020 have devalued the naira: Here ’ s Word of the country will also reap from. We will assume that you are happy with it continue to use this site we will assume that are. Earn their salaries in dollars stable at the foreign exchange market in are... Naira devaluation are expected to have a negative impact on the Nigerian.... Of this happening in 2020 translate their Bank account to naira and post good profits dollars – some earn... In naira ensure that we give you the best experience on our website rate has been,...