Tuesday, July 15, 2025
24.3 C
Lagos

CBN Targets N500-to-Dollar Exchange Rate

The Central Bank of Nigeria [CBN] is subtly pushing for exchange rate of N500 to a dollar at the parallel market to discourage importation of frivolous items into the country and in the process, conserve the nation’s dwindling foreign currency revenue.
As at yesterday, the Naira exchanged for N345 to a dollar at the parallel market.

A senior official of the CBN told Business Journal in Abuja: “Officially, we are alarmed at the rising exchange rate between the Naira and major international currencies. But unofficially, we are really optimistic that the expensive cost of major foreign currencies will discourage our people from travelling abroad to bring in all manner of goods the country could either produce domestically or do without entirely. For us at the CBN, the development is a double-edged sword.”

In the same vein, a market analyst in Lagos said the CBN could be the biggest beneficiary of the rising dollar value against the Naira.

“Who wants to import at a loss? What the CBN failed to achieve by banning 18 items, could now be achieved through the back door because many importers will simply think twice before travelling to Dubai or China to bring in second-hand clothing that could become very expensive for people to buy. The end result would be less importation. The only challenge would be for genuine operators in the real sector who need foreign exchange to import raw materials and machinery for industrial production.”

Affirming the situation, an importer, Mrs. K. Obioma said: “Normally, l travel to Dubai or London once a month to bring in mostly used consumer goods but the current high cost of dollar has become a real headache for my business. And that explains why l have not made any trip since this year. The issue is: how many people can afford such goods at the new price and how will l recoup the investment and make profit? Of course, l’m now looking inward for a business l can easily transact locally without the problem of dollars.”

spot_img
spot_img
spot_img

Hot this week

NAICOM, Insurance Industry Mourn Buhari

It is with profound sadness that we received the...

Polaris Bank Partners Woodhall Capital, UK, Lagos State in ₦1.5bn Creative Economy Fund

L-R- Abimbola Ozomah, Executive Director, Polaris Bank; Mojisola Hunponu-Wusu,...

Heirs Insurance Group Reports N61bn GWP in 2024, an Increase of 70%

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, has...

Stanbic IBTC Holdings Meets CBN’s N200bn Recapitalisation Policy

In a landmark achievement that highlights the steadfast confidence...

SanlamAllianz Partners NCRIB on 2025 Empowerment Series

Dr. Abosede Adegbite, Consultant, Family Physician; Tope Adaramola, Executive...

Topics

Sterling Bank Champions Cancellation of Transfer Charges

In a landmark move that sets a new benchmark...

South African Airways Flies on Bio-kerosene

South African Airways have flown their first bio-kerosene fuelled...

‘INSURANCE FIRST’ Policy Adopted by New NIA Chairman, Tope Smart

Mr. Tope Smart, Group Managing Director/CEO of NEM Insurance...

Access Bank Highlights Leadership at Climate Governance Initiative Launch

Access Bank Plc has once again demonstrated its leadership...

Bosch, P&G, Maersk Boost FDI in Nigeria with $3bn

Procter & Gamble, AP Moeller-Maersk A/S, the world's largest shipping container line, and German company, Bosch have announced plans to increase their investments in Nigeria as they seek to expand their operations. Procter and Gamble recently invested an additional $300 million for the expansion of its manufacturing plant in Agbara Industrial estate in Ogun State. P&G’s President for India, Middle East &Africa, Mohammed Samir, said the company’s commitment to growth and development of Nigeria is reflected in its continued investment in the country.

NNPCL Alleges Co-ordinated Sabotage Campaign Against its Leadership

The Nigerian National Petroleum Company Limited (NNPC Ltd) has...

Olashore Wins International School Award

Olashore International School has just won the British Council...

Stanbic IBTC N15bn Infrastructure Fund Series II Offer Opens

Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC...
spot_img

Related Articles

Popular Categories

spot_imgspot_img