CBN Sold $401mn Last Friday to Support Naira, as Dealers Reduce Import on ‘Tokumbo’ Vehicles

The Central Bank of Nigeria (CBN) sold $401 million on the interbank market at N198 to the dollar last Friday to prop up the ailing naira currency, an foreign exchange market body comprising top tier banks said on Wednesday.
Vice Chairman of the Financial Market Dealers Quotations (FMDQ) Jibril Aku also said the central bank would be filling orders on a daily basis before the markets open.
Falling naira: Dealers reduce Tokunbo vehicle imports – The anticipated surge in the importation of used vehicles into the country is not manifesting less than two months to the commencement of the payment of 35 per cent levy on such vehicles. Investigation by our correspondent revealed that the devaluation of the naira and the subsequent free fall of the currency against major world currencies had significantly raised the cost of buying used vehicles and clearing them at the nation’s seaports. It was learnt that though a lot of Nigerians still desired to buy second-hand vehicles, popularly referred to as Tokunbo vehicles, auto dealers had reduced their volume of importation by over 50 per cent due to escalating costs and the failure of many target buyers to commit huge expenditure outlays at this period.

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