Breaking: CBN Adjust Naira From N360 To N380 At SMIS
The Central Bank of Nigeria (CBN), has instructed bidders at its Secondary Market Intervention Sales (SMIS) to increase their bidding price to N380/$1 floor, according to Nairametrics.
The SMIS is the market where importers bid for forex using Letters of Credit and Form M.
According to Nairametrics, the central bank informed banks that they will only accept bids from N380/$1 and above and no longer N360/$1 meaning those who bid lower will not get any forex allocation. Transaction success in this market us based on bids with those who bid higher than the floor often in an advantageous position to secure forex.
This is essentially a huge attempt at unifying the naira and another adjustment of the exchange rate by the CBN. Recall the CBN Governor had informed investors that the bank will be unifying the exchange rate towards what is being traded at the NAFEX market where investors and exporters trade forex.
More details later…..