Naira falls to N930/$ at parallel market as BDCs lament dollar scarcity

Adebari Oguntoye
Adebari Oguntoye
Dollar and Naira

The naira, on Wednesday, depreciated to N930 per dollar at the parallel section of the foreign exchange (FX) market.

The figure represents a depreciation of N25 or 2.76 percent compared to the N905 it reported on August 23.

Currency traders known as Bureaux De Change operators (BDCs), who spoke to TheCable in the Ikeja area of Lagos, said the plunge was due to scarcity of the greenback.

The traders put the buying price of the dollar at N925 and the selling price at N930 — leaving a profit margin of N5.

A BDC operator, who simply identified as Shehu, said “even some Nigerians are unable to withdraw forex from the banks”.

He said the lifting of the ban by the Central Bank of Nigeria (CBN) on sales of forex to BDC operators has failed to help resolve the scarcity, as the banks are not selling to the BDCs.

Meanwhile, at the official market, the local currency to close at N742.10 on Tuesday, according to data from FMDQ Securities Exchange, a platform that oversees official foreign exchange trading in Nigeria.

Data from FMDQ showed that the market opened at N761.24 to the dollar, recording a high of N807.15 and a low of N738.

A total of $42.26 million was traded in foreign exchange at the official investors’ and exporters’ window (I & E) window.

On Tuesday, the CBN said a review of the change in the FX regime showed that banks are in a position to profit from its potential to significantly increase the naira value of banks’ foreign currency (FCY) assets and liabilities.

The apex bank directed deposit money banks (DMBs) to stop utilising gains from the revaluation of the naira to pay dividends or finance operations.

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