“Naira to Trade Below N1,000/$”: Nigerians React as BDCs Begin Quoting Dollar at New Rate

• Moves by the CBN to crash the dollar buying rate for BDC operators have begun to have an impact on the unofficial market
• As of April 8, the naira has gained significantly, selling for N1,200 per dollar on Monday, April 8, as opposed to the N1,245 traded on Saturday, April 6
• Nigerians have reacted to the development in a mixed manner as some appreciate the CBN's effort while some said more needs to be done

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria (CBN) recently further crashed the dollar buying rate for Bureau de Change operators (BDCs) to N1,101 per dollar.

The move comes a few days after the BDC operators requested a review of the buying rate of the dollar by the CBN.

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As a result, Legit.ng reported that the rate of the naira appreciated, trading at N1,200 per dollar on Monday, April 8, as opposed to the N1,245 traded on Saturday, April 6, 2024.

In the official market, the naira traded at N1,230.60 per dollar despite Nigeria's FX reserves declining by $1.5 billion.

Analyst who spoke to Legit.ng expressed belief that there will be positive movement and gradual appreciation in the naira value when the CBN takes seriously the mandate of liquidity injection into the system to ensure fx stability and availability.

Charles Abuede, a financial analyst said,

"I see naira closer to N1000 in 2024 if the authorities address the front burning issues in the fx market."

How Nigerians are reacting to exchange rate

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Special adviser on information and strategy to President Bola Tinubu, Bayo Onanuga, disclosed on social media X:

“Central Bank sells $ 15.8 million at $10,000 each to the 1588 BDCs registered in the country. The forex is to be sold to end users at a margin of 1.5%. The way the Naira is gaining ground over the US Dollar, it will be safe to predict that the Naira will sooner than later be trading below N1000 to a dollar, a great rally compared to where it was weeks ago.”

@Nsikak103936 stated:

“I commend the good effort the CBN is making but the prices of goods and services are still sky rocketing on a daily basis can't there be away to cuision the effects?”

@Nsikak103936 noted:

“Clap for yourself. When APC met Naira at 198 per dollar? Naira at 1000 per dollar is progress/achievement in the Republic of Balablu."

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@OMikeli58551

“Naija FX reserve deeping down by $1.03 billion in the last 18 days but naira gaining values little. Robbing Peter to pay Paul. Solve a problem by creating another problem… one step forward, 20 step backwards… There won't be binance to blame again when the dollar rises again.”

@MikaelCBernard said,

"The Agbado regime removed all the subsidies enjoyed by the Nigerian people, from Fuel to schools to Electricity and used the money to subsidise dollars for BDCs. $1B spent in 18 days subsidising dollars without any impact on the prices of goods."

@simplyweezee noted,

“Just to inform you all, I know the price of dollars is dropping but don't trade your dollar ooo... Before May, it'll still skyrocket”

@OsebiFy

“Now we can agree for once that this government is trying.”

@Northerner0

“Wailers aren’t happy about it, though! May it fall below 1k. Amen!”

@iam_wilsons

“Still very high. Let the CBN sell to the BDCs for N650.”

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CBN slashes import duty rate after banning foreign currency collateral for naira loan

CBN gives fresh order to Zenith, GTB, Access

Legit.ng reported that the use of foreign currency as collateral for naira loans has been banned by the Central Bank of Nigeria (CBN).

Dr Adetona Adedeji, the acting director of the CBN's Banking Supervision Department, stated this in a directive to Nigerian banks.

However, the CBN excluded any Eurobonds that the Federal Government of Nigeria issued or foreign bank guarantees, such as standby letters of credit, from the prohibition.

Source: Legit.ng