The CBN has issued another circular increased its Net Open Position from 0.1% to 0.5% of shareholders fund unimpaired by losses.
Last year it had reduced the NOP to zero % in an effort to reduce speculation of the Naira
The CBN also instructed that all purchases from rDAS and Interbank funds should only now be used for funding Letters of Credits, Bills for Collection and “other invincible transactions, subject to appropriate documentation.”
Therefore, rDAS and interbank funds should no longer be sold to BDC’s and other Authorised buyers
The implication of this is that liquidity for BDCs and Banks will be highly limited and as they will now rely mainly on forex from retail buyers and sellers to trade.
This will drive up dollar prices at the black market
As such, if you need dollars to travel abroad and you want to buy from the black market or BDCs you will likely get it at a higher price. In fact, it is likely dollar will get to N200 on or before mid February
Another option will be for you to travel with an eligible naira debit card and use it to spend abroad. That way you pay at the prevailing interbank market price.
Some Analysts also suggest the CBN will devalue after the elections as the CBN is unlikely to keep defending the naira at the risk of being hammered by the international community.
I really don’t get this CBN… one minute una go talk one thing.. next minute una talk another thing!!! na wah ohhh