The Nigeria’s central bank has scrapped rDAS market which it conducted bi-weekly following a circular issued. But the bigger news today is that the CBN has now told the dealers that it will be selling dollars at the interbank at N198. The MD of GT Bank and a director of FMDQ Segun Agbaje was quoted as saying “Yes, we will move the band,” Agbaje said. “If demand in RDAS is only 10 percent, really the devaluation has happened.”
This came under new rules released on Wednesday. Under the new rules, banks will only be able to purchase foreign exchange if they have a prior order from a corporate customer, such as a fuel importer or foreign mobile phone company looking to repatriate profits or dividends.
Any outstanding dollar demand at the end of each trading day will be met by the central bank at 198, FMDQ vice chairman Jubril.
Why the bank abandoned rDAS?
The CBN said it had decided to abandoned the rDAS because it only constituted 10% of the forex market suggesting that the CBN’s band of N168 + or – 5% was unrealistic.