The country’s fiscal state faces tougher times as the Central Bank of Nigeria (CBN) bowed to pressure, last week, and further devalued the local currency.
The adjustment of the exchange rate at the busiest window is coming three months after the local currency was similarly devalued by 24.6 per cent, a decision that has worsened the inflationary pressure and interest rate.
Bloomberg reported at the weekend that the CBN raised the rate at the Secondary Market Intervention Sales (SMIS) – a window where importers access foreign currencies – from N360/$1 to N380/$1 with an instruction to bidders to comply accordingly.
The directive came less than two weeks after CBN Governor Godwin Emefiele hinted that the apex bank was moving towards ending the multiple-rate regime.
As at press time, it was not clear whether the latest adjustment would mark the commencement of the planned rate harmonisation. Efforts to confirm this and the validity of the directive, which is yet to be officially announced, failed as the CBN spokesperson, Isaac Okorafor, did not pick his call or reply to text messages.
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