The exchange between the naira and the US dollar has dropped to as low as N525/$1 at the black market after the CBN banned the sales of forex to the Bureau De Change operators in the country while addressing members of the press yesterday.
According to black market traders, contacted by Nairametrics, demand for the dollar has pushed the exchange rate further downwards at the black market to as low as N525/$1, despite selling for N505/$1 in the early hours of today.
Backstory
Recall that the Governor of the Central Bank of Nigeria (CBN) announced on Tuesday that the CBN will no longer sell dollars to Bureau De Change operators in the country. The ban was placed due to the greedy actions of the BDCs by selling forex in large quantities amongst other monetary violations
According to the CBN, the BDCs sell dollars to the tune of millions, which has consequently affected the country’s exchange rate. The governor also hinged on the fact that the BDCs are gradually dollarizing the Nigerian economy.
Also, Nairametrics reported earlier, what happed the last time the CBN banned the sale of dollars to the BDC in 2016, as the exchange rate dropped from N268/$1 as of 11th January 2021 to N495/$1 by the end of the same year.
In less than 24 hours, Naira has fallen by N20/$1.
