Bureau de Change Operator Explains Why Naira Sells for N950 Per Dollar
- The naira closed at N950 per dollar at the parallel market on Wednesday
- BDC operator said the fall in naira was due to a shortage of dollars in the market
- On the I&E window, however, the naira closed at N758.12/$
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On Wednesday, September 13, 2023, the parallel market saw the naira fall to N950 to a dollar.
Legit.ng confirmed that the naira was bought for 940/$ and sold for N950/$ respectively. This leaves operators with a profit margin of N10 per dollar sold.
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Decline caused by shortage of dollar
In a report by TheCable, Bureaux De Change operators in the Ikeja said the decline in naira value was due to shortage of dollars.
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A BDC operator identified as Shehu said some Nigerians were unable to withdraw foreign currency from banks.
He claimed that the Central Bank of Nigeria's (CBN) decision to suspend its prohibition on the sale of foreign exchange to BDC operators had not been able to alleviate the shortage because the banks were still refusing to do so.
According to data from the FMDQ, the official trading platform, the naira closed at 758.12/$ on Wednesday as opposed to 742.10 on Tuesday in the Investor & Exporter FX window.
The CBN stated on Tuesday that a study of the FX regime adjustment revealed banks were in a position to profit from its potential to noticeably raise the naira value of banks' FCY assets and liabilities.
The apex bank ordered deposit money banks (DMBs) to avoid using benefits from the naira's revaluation to finance their operations or pay dividends.
“Too Cheap": CBN Names BDC Operator Selling Dollars Below N700/$, Begins Manhunt for Others
The CBN earlier said it was investigating Crown Agent, a Bureau De Change (BDC) operator, for selling dollars below the official rate, Legit.ng had reported.
Data from FMDQ securities showed that at the official market's Investors and Exporters window, the naira closed at N744.97/$1 on Tuesday, September 5, 2023.
The concern by CBN means that the BDC operator must have been selling the forex below N700 per dollar, which is considered too cheap.
Source: Legit.ng
