Manufacturers who had outstanding dollar requests and Letters of Credit (applied for at N197/dollar) before the new foreign exchange policy came into existence lost approximately N348.6bn by Monday, June 20, 2016, the day the policy commenced, findings by our correspondent have revealed.
The outstanding LCs and dollar requests totalled $4.02bn and they were filed when the naira exchange rate was 197 to a dollar. The requests were honoured on the day the new policy commenced but at the new exchange rate of N280 to the dollar.
The aggregate amount bid for by the manufacturers under the former exchange rate of N197 to a dollar was N827.4bn, but the amount they were asked to pay based on the new rate was N1.176tn. The manufacturers were required to come up with the difference of N348.6bn.
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