We buy dollar at N320, says PZ Cussons

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PZ Cussons Plc says it is paying as much as 70 per cent more than the official rate for dollars as the Central Bank of Nigeria trading restrictions reduce availability of foreign currency in Africa\’s biggest economy. \r\n\”Whilst the official naira exchange rate continues to be stable, a lack of availability at that rate is resulting in the majority of dollars being purchased at a premium of 50 per cent to 70 per cent,\” the Manchester-based maker of Imperial Leather soap said in a trading update on Thursday. \”The resultant cost impact is being managed through changes to relative pricing in an environment where trading conditions remain challenging. \r\nThe situation in Nigeria remains extremely fluid,\” it added. Bloomberg reports that while oil revenue and exports have plummeted since 2014, the Governor of the CBN, Godwin Emefiele, and President Muhammadu Buhari have refused to let the naira weaken. They have pegged it since March 2015 at 197-199 against the dollar through currency trading and import restrictions that have deterred foreign investment and made it tough for manufacturers to buy inputs from abroad. The black market rate has fallen to 320, around the level PZ Cussons implies it is buying dollars.

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