As the dollar becomes more scarce, the naira has continued to depreciate, according to research by Platinum Times.
The naira started trading at $1,175/$ and ended the day at $1,190/$ in the parallel market.
The naira had previously traded at 1,100/$ on the black market two weeks prior.
According to data received from the FMDQ, it sold at 808.28/$ at the close of trading on Friday, down from 810.05/$ on Thursday. However, it increased somewhat on the Investor & Exporter FX window.
The dollar was rare, according to some Bureau de Change employees who talked with The PUNCH, as many did not have foreign currency to provide to customers.
A BDC operator, Jubril Mutiu, said,
“On Friday, the price was 1,175/$, but we don’t even have it. It is not available right now.”
Another BDC operator, Adamu Afeez, said,
“We are looking for those to sell to us, but now, we don’t have the dollar to buy. If we don’t have one, we cannot sell.”
Another BDC operator, Ibrahim Abu, said,
“We sold for 1,175/$ in the morning till afternoon on Friday. By 2 p.m., it was already selling for 1,190/$. It has been fluctuating. I don’t know what the rate will be on Monday.”
The naira had continued to maintain devaluation following the CBN’s order to the lending institutions to allow the free flow of the country’s exchange rate in June.
Before floating the naira, it traded at the official market on the FMDQ at 471.67/$ and at the parallel market at 765/$ in June.
The President, Association of Bureaux De Change Operators of Nigeria, Dr Aminu Gwadabe, said achieving stable, strong and virile exchange rate in Nigeria would require full participation of BDCs in the retail segment of the forex exchange market.
He said the challenges confronting the nation’s forex market and depreciation of the naira required cooperation from all.
The BDCs, he said, were licensed to play at the retail end of the forex market and should be fully involved in providing lasting solutions to the ongoing volatility in the exchange rate.
Gwadabe said,
“The continuous depreciation of the naira in official and parallel markets does not benefit the BDCs and the domestic economy. Hence, steps should be taken to reverse the trend and strengthen the local currency for maximum economic impact.”
He said several measures by the apex bank to bridge the exchange rate gaps showed genuine intentions of the regulator to entrench exchange rate stability, but getting the BDCs involved in the solution recipe would bring the desired results of a highly liquid market and stable rates.
Gwadabe said that, like every other market segment, the market’s illiquidity remained a significant concern to the BDC sector.
He said aside from illiquidity in the market, ABCON was unhappy with the unlicensed forex dealers who were at the centre of speculative activities and attracting a negative image to the sub-sector.