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Again, Naira On A Free Fall Against US Dollar As CBN Halts Sale Of FOREX To BDC Operators

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Following the Central Bank of Nigeria’s ban on the sale of FOREX to Bureau De Change operators, Naira fell marginally against the U.S dollar at the parallel market on Tuesday.

The Apex bank based the band on the parallel market becoming a conduit for illicit forex flows and graft, adding that it will also call off the processing of applications for BDC licences in the country.

Godwin Emefiele, the governor of the CBN, noted that weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks.

“We are concerned that BDCs have allowed themselves to be used for graft,” Mr Emefiele said.

According to statistics from abokiFX.com, naira closed at N505.00 per $1 on Tuesday, a N1.00 or 0.20 per cent devaluation from N504.00, the rate it traded in the previous session on Monday.

Also, the local unit also fell against the greenback currency at the official market segment on Tuesday, data posted on the FMDQ Security Exchange where forex is officially traded showed.

More data from the website showed the naira closed at N411.67 per $1 on Tuesday, representing a N0.17 or 0.04 per cent depreciation from N411.50, the rate it exchanged hands with the hard currency in the previous session on Monday.

This became evident as forex turnover slumped by 17.10 per cent, with $115.67 million posted at the end of the market session as against the $139.49 million recorded in the previous session on Monday.

The currency hit an intraday low of N412.95 and oscillated to a high of N387.67 before closing at N411.67 on Tuesday.

The spread between the official market and the parallel market segment rates is pegged at N93.33, translating to a margin of 18.50 per cent as of the close of business Tuesday.

Lady Decency
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