×
  • Business - Economy
  • Updated: May 26, 2020

Naira Depreciates Further Against Dollar, Hits N462 to $1

Naira Depreciates Further Against Dollar, Hits N462 to $1

Today, the parallel segment of the foreign exchange market saw Naira depreciate against the dollar beyond the N460 to $1 recorded on Monday. On Tuesday, the Naira depreciated further to N462 to one dollar.

The depreciation happened as forex continues to be scarce in the market. Currently, there is only limited force supply as Nigeria's Central Bank of Nigeria (CBN) limit the selling of dollars to commercial banks only, while stating that the Bureau De Change Operators will resume selling when the restriction on flight movement is lifted.

Currently, the baanks are only selling forex to small and medium enterprises (SMEs) in need of importing essential materials for their businesses, while individuals who want to make school fee payments can also apply for forex as well.

AllNews had reported that Guaranty Trust Bank (GTBank) is no longer accepting naira payment for foreign transactions. GTBank suspended the transfer of funds in naira on its Naira Debit Cards, demanding that its customers in Nigeria pay in the currency of the foreign destination.

According to the report, banks are now demanding that customers make payments through inflows from abroad, in line with Central Bank of Nigeria’s (CBN) domiciliary account policy. The policy directs that if a customer intends to transfer funds abroad to a third party, such funds must be that which was initially transferred through electronic fund transfers into their domiciliary accounts. And only cash deposits into such accounts can only be withdrawn in cash.

Related Topics

Join our Telegram platform to get news update Join Now

0 Comment(s)

See this post in...

Notice

We have selected third parties to use cookies for technical purposes as specified in the Cookie Policy. Use the “Accept All” button to consent or “Customize” button to set your cookie tracking settings