“Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs, for the period Monday, November 30th to Friday, December 14, 2020, is as follows.
- IMTSOs to banks – N388/1USD
- Banks to CBN – N399/1USD
- CBN to BDCs – N390/1USD
- BDCs to end-users Not more than N392/1USD
- Volumes of sale for each market is USD10,000.00 per BDC”, from a Central Bank of Nigeria (CBN) circular.
Yes, the CBN has revalued the Naira; now, it is N390 per 1USD officially. In the black market, it is hitting N500 per 1USD. It is becoming exceedingly challenging for companies which do not have something they can do to earn forex to bring in necessary raw materials from outside the country.
My understanding is that some building materials importers are now funding Nollywood movies exclusively for YouTube adverts which pay in US dollars. I am not sure how durable that strategy would be since Nollywood channels in YouTube are growing daily with no specific differentiation and leverageable moats. Yet, you cannot blame anyone for trying. I do hope we find a solution fast.
*IMTSO stands for International Money Transfer Service Operators---
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