The consequences of the Central Bank of Nigeria (CBN) ban on the sales of forex to Bureaux De Change (BDC) operators, seemed to have no effect on the Naira, as it crashed to N300 to $1 yesterday.
According to some operators interviewed, the Naira exchanged for 300 against the dollar in Kano, 290 in Lagos and 292 in Abuja.
The Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, told Punch in an interview that the currency traded against the greenback at 300, 290 and 292 in Kano, Lagos and Abuja a day after the CBN announcement.
“There is cut of (dollar) supply to the market. The BDC sub-sector has been murdered. We are not coping. The naira is going to head northwards. There is no solution in sight,” Gwadabe lamented.
The Head of Investment Research, Afrinvest West Africa Limited, Mr. Ayodeji Ebo, said the stoppage of forex sale to the BDCs meant that the CBN wanted everybody to apply to the banks for dollars.
He stated, “But we feel the pressure now will move from the BDCs to the parallel market. We will see significant spike in the value of the naira at the parallel market because the little supply to the BDCs have also helped to cushion the demand at the parallel market.
“It will further compound or increase the spread between the parallel market and the interbank market. So, it will also increase round-tripping and unethical practices within the financial system.”
On the lifting of the ban on cash deposits into domiciliary accounts, Ebo said, “I am still skeptical about how this will work except they are also assuring us that if you deposit it, you can consummate business with it.”
The CBN had on Monday outlined the reasons for the ban on sales of forex; saying that the depletion of dollar reserves and the activities of dubious BDC dealers were some of the reasons for the ban.
