EXMAN bemoans CBN’s naira rate adjustment, says new rate threatens businesses
The Experiential Marketers Association of Nigeria (EXMAN) has reacted frontally to the rate adjustment policy recently announced by the Central Bank of Nigeria (CBN), pegging the naira rate at 380 to the United States Dollar.
The Association said that the new rate adjustment by the apex bank would impact negatively on business operations in the country, stressing that the development points towards a difficult and tough year ahead and “businesses will certainly feel it”.
In his first official reaction to the CBN new rate adjustment, President of the Association, Tade Adekunle observed that with the current shutdown of activities all over the world and activities in the country gradually grinding to a halt on account of the COVID-19 pandemic, the CBN’s new rate adjustment would negatively affect clients’ businesses and ultimately impact negatively on the industry’s entire business operations.
“It’s already going to be a tough year. Businesses will certainly feel it. With the shutdown of activities all over the world (especially China), selling our oil has become a challenge. With activities in the country gradually coming to a standstill, it will affect our clients’ businesses and without doubt will have effect on us too. Let’s just hope this will not last too long,” he said.
EXMAN is the sectoral trade body for forward-looking experiential marketing communications agencies in Nigeria.
Through a recent policy announcement publicised by CBN Governor, Godwin Emefiele, the Central Bank informed that it had collapsed the multiple exchange rate policy that determined the value of the naira and adopted the single exchange rate. According to the apex bank’s statement, the country would now have a uniform rate for the official rate, bureau de change operators, importers and exporters amongst others.
The CBN, in a recent circular signed by the Director, trade, and exchange department, Ozoemena Nnaji, on the disbursement of the proceeds of the International Money Transfer Operator (IMTO), further explained that IMTSOs to banks will be at N376 per dollar, banks to CBN N377 per dollar, CBN to Bureau de change operators N378 per dollar, BDCs to end-users should not be more than N380 per dollar and the volume of sales for each market is $20 thousand per BDC.
Although this move has been seen as technically devaluing the naira, the apex bank last week said in a release that “market fundamentals do not support naira devaluation at this time, noting that the naira had been under pressure after oil prices fell $30 per barrel, way below the government’s $57 target on which the 2020 budget was planned.
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