Nigeria’s tier 1 lender, Guaranty Trust Bank, GTB cannot pay dividends to holders of its global depository receipts, GDR due to Nigeria’s worsening foreign exchange shortage.
GTB said on Tuesday in a note to GDR holders that its registrar – the company which maintains lists of bond and shareholders – was in a queue with the Nigerian central bank for dollars to make the pay-out.
Nigeria’s central bank is struggling to make foreign exchange sales following a recent surge in demand.
Nigeria is currently grappling with severe foreign exchange shortage following sharp drop in crude oil prices amid dwindling foreign reserves, as well as drop in remittances which contributed significantly to the forex inflow.
Most Nigerian banks have now resorted to slashing international transactions limit to no more than $100 per month to cope with the scarcity.
The Naira traded at N480/$1 and N477/$1 at the parallel and Bureau De Change windows respectively as at the close of business on Tuesday.
It remains at N379/$1 at the CBN’s official window.
Recall that a fortnight ago, the CBN further adjusted the official exchange rate from N360/$1 to N379/$1.
This was in line with the apex bank’s earlier promise to unify the exchange rate as the forex scarcity lingered.
Analysts contend that the move, although not enough to address the current situation, may pacify some stakeholders who had been clamouring for the devaluation of the naira to meet market realities.
Meanwhile, the CBN has not officially announced that the N379 per $1 will be the unified rate. But it is a major move towards ending the era of multiple rates as the shortage bites harder in Africa’s largest economy.