- The naira’s value also decreases on the Investor & Exporter (I&E) window, falling to 773.42 naira per dollar from 757.10 naira per dollar
- Dollar’s value ranged between 895 and 905 naira per dollar in various cities including Lagos, Kano, and Abuja
The Nigerian naira experienced a decline against the US dollar in the parallel market on Wednesday, ultimately settling at a rate of 900 naira per dollar. This decrease occurred just a fortnight after the local currency had been traded at a rate of 960 naira per dollar in the black market.
Despite recent gains in the value of the naira, it regressed due to a scarcity of the US dollar in the black market. Earlier this week, the local currency had been fluctuating between 850 naira and 880 naira per dollar.
Wednesday witnessed a further drop in the naira’s value within the parallel market, extending to a reduction in its value on the Investor & Exporter window, where it reached a rate of 773.42 naira per dollar. In comparison, the naira had concluded the preceding day at 757.10 naira per dollar in the I&E Window.
Currency exchange businesses in Lagos, Kano, Abuja, and various airports reported the dollar’s value ranging between 895 naira and 905 naira per dollar on the same Wednesday.
A BDC operator at the Lagos airport, who simply identified himself as Sanusi Ibrahim told The PUNCH that “We bought and sold the naira today at 890/$ and N900/$.”
At the Central Business District in Abuja, a BDC operator, Yusuf Kareem, said, “The dollar is still scarce. We sold for N900 today.”
At the Allen Avenue Ikeja, Lagos, Alhaji Gambo Aliu, a currency dealer said he told the greenback at 905/dollar.
As naira continued to defy efforts to tame its slide, the Central Bank of Nigeria has threatened to revoke operating the licences of BDCs who violated its rules.
The President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, confirmed this to journalists after a sensitisation engagement with BDC operators.
“At a sensitisation engagement between the CBN and our compliance officers across the zones, the apex bank reiterated that by 31st of August, 2023, any operator that breaches its circular on the allowable margin of -2.5 per cent and +2.5 per cent on average weighted rate of I&E closing rate, rendition of returns and payment of penalties, risks the revocation of the operating licence,” he said.
On Friday, the apex bank announced operational mechanism for the BDCs to trade foreign currencies at similar rate obtainable on the Investor & Exporter forex window.
It gave the directive to BDCs in a circular dated August 17, 2023, and titled, ‘Operational mechanism for Bureau de Change operations in Nigeria.’
It read in part, “The spread on buying and selling by BDC operators shall be within an allowable limit of -2.5 per cent to +2.5 per cent of the Nigerian exchange market window weighted average rate of the previous day.
“Mandatory rendition by BDC operators of the statutory periodic reports (daily, weekly, monthly, quarterly and yearly), on the financial institution forex rendition system which has been upgraded to meet operators’ requirements.”