“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.
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*IMTSO stands for International Money Transfer Service Operators
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Prof, there is trouble in the land…..but we will get through this as well!
I concur but we need to move fast
The job of a medicine is not to cure any ailment, rather to put the sick person on the road to recovery, as far as possible. This is because there are those whose conditions may not get better, even with best medical care possible.
When you understand the depths of Nigeria’s predicament, you realise that setting naira even at six hundred to a dollar won’t cure it, because the supply is always much smaller than demand.
Going to YouTube to fund cheap movies with the hope of getting some dollars won’t solve much, the platform is still foreign owned, you are just getting a cut as a producer.
We will fix Nigeria, it will take a while, but our idea is to put the economy on the road to robust recovery, as far as possible.
Prof. To be our strategy are not working, cause of production is becoming a serious issue of concern.
There’s need to change strategy in line with reality not been political because the effect will be graveous I not dealt with in good time.