Dollar Changes at The Rate Of #380.
The Bank Of Industry (BOI) has decided to raise €1 billion from the international market. This move is to help improve the capacity of the bank to continue supporting Micro, Small, Medium and Large businesses. The bank, said it’s decision is in line with the aim of President Muhammadu Buhari’s administration to create 10 million jobs .
The program was launched on January 15, 2020 with an initial size of €750 million. The bank disclosed that upon closing on February 19, 2020, the deal was oversubscribed by 60 per cent. The deal size was thereafter increased to €1billion. The bank, said the transaction is a strong confirmation of its acceptance in the International Financial market. This follows its first successful fundraising transaction in 2017, which raised $750 million from a syndicate of 16 International banks.
According to the bank,lots of key factors led to the success of the deal. The credit ratings of the bank, it’s ISO certifications in Quality Management Systems and Information Security are impressive. Strong partnership developed with Nigerian commercial banks, who provide credit enhancements and de-risking tools to BOI customers was helpful.
“Of particular and special note is the support of the Governor of the Central Bank of Nigeria and his committee. It was crucial to the success of this transaction, BOI said.
What Has Been Achieved.
In 2019 , the Bank Of Industry with support of its various stakeholders, gave out the sum of #234 billion to 10,145 businesses. This enables them create over 1million estimated direct and indirect jobs.
With the successful conclusion of the €1 billion deal, the BOI, says it aim is to speed up domestic production and job creation.
Dollar Rate Now #380.
While the Bank Of Industry seeks to raise funds and help businesses, the Central Bank Of Nigeria has restored the uniform exchange rate. Dollar, now changes to naira at the rate of #380, thus, devaluing the nation’s currency.
Any plans of devaluing the Naira was denied by the CBN, last two weeks. The apex bank, said the market fundamentals do not support Naira devaluation at this time.
In a bid to justify its actions, CBN, argued that the Naira has been under pressure . Crude oil prices fell below $30 per barrel at the international oil market due to the impact of the Corona virus. It fell way below the government’s $57 target on which the 2020 budget was planned.
Now, dollars will be sold to bank at #376, while banks to CBN at #377 per dollar. CBN to Bureau de Change operators will be #378, while BDCs to end users should not be more than #380. The volume of scale for each market is $20,000 per Business Development Company (BDC).
According to CBN, it’s Currency Adjustment and not Naira devaluation. This is the highest official exchange rate between the Dollar and Naira in the last two years.