Naira Strengthens Further Against Dollar On Parallel Market

NAIJ can report that the new foreign exchange policy by the Central Bank of Nigeria (CBN) may have started taking its toll on the bureau de change operators. Findings on Wednesday afternoon revealed that after the flotation of the Nigerian currency, the BDC guys have started lowering their rates as more banks have been empowered to sell the naira to interested buyers in a bid to have a single market for forex trading.

Rising from its N335/$ rate on Tuesday, the Nigerian currency now trades at N320/$ on the black market as more buyers prefer to purchase from authorised dealers rather than the black marketers. Sources at the BDC informed our correspondent that they have been in trouble since the new policy took effect on Monday, June 20. Although many of the operators are still on the streets, trying to get people to buy their dollar which may soon get beyond their reach if the new CBN policy swings into full implementation. Meanwhile, there are also reports that the CBN sold a massive $100 million at its interbank spot on Tuesday, as the country’s apex bank seeks to pay the backlog of $4bn being owed.

Speaking on the latest development, CBN’s spokesperson, Isaac Okoroafor told Bloomberg that, “It’s our estimate that the bulk of the backlog of orders has been met. “We’re very optimistic that liquidity in the FX market will improve. Whether we decide to intervene again depends on the dynamics.”

The new policy, according to Godwin Emefiele, the CBN govenor, is one that ensured the floating of the Nigerian currency, and the fact that the foreign currency will only be obtained from only a market. When NAIJ.com’s crew went on the streets to ask the BDC operators for their thoughts on the new policy by the central bank, they were quite evasive, as they vowed that they had nothing to say about the new development. Most of them stated categorically that it will not in any way affect their smooth operation.

Source:- Naij