Naira drastically gained as dollar fall from N522/$ to N412/$

Naira drastically gained as dollar fall from N522/$ to N412/$

Naira drastically gained as dollar fall from N522/$ to N412/$

Nigeria Naira raised against the U.S dollar at the parallel market on Monday, a week after the Central Bank of Nigeria (CBN) said it would no longer sell forex to Bureau De Change operators.

Last week the local unit, which opened trading session at N505 per $1, and trading at N522 to a dollar at the parallel market segment, data from abokiFX.com, a website that collates parallel rates in Lagos showed.

This implies a N17.00 or 3.40 per cent devaluation from N505.00, the rate it closed at the previous session of the black market on Tuesday. It is the currency’s biggest fall ever.

The CBN governor, Godwin Emefiele, had announced Tuesday that it has stopped the sales of forex to Bureau De Change operators.

He explained that the parallel market operations had become a conduit for illicit forex flows and graft.

The Central Bank of Nigeria (CBN) banned the sale of forex to Bureau De Change operators (BDCs).

Godwin Emiefele, governor of the bank, announced the ban at a press briefing which held after a meeting of the Monetary Policy Committee of the bank, on Tuesday.

He said the N5. 7 billion allocated to BDCs had become unsustainable as

$20,000 is allocated to over 5500 BDCs, amounting to $110million per week.

Emiefele said BDC operators have become a conduit for illegal financial flows.

They have turned themselves away from their objectives. They are now agents that facilitate graft and corruption in the country.”

We cannot continue with the bad practices that are happening at the BDC market,” he said.

He also said the CBN will no longer continue registration of new BDCs and current allocation will be channeled to commercial banks.

All commercial bank branches will create a separate desk for sales of forex.

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