BDC Traders Sell Dollar, Euro, Pound at New Rate After Public Holidays

• The value of the Nigerian currency, the naira, has depreciated against the US dollar in the unofficial markets
• Street currency traders and fintech companies quoted new exchange rates for the dollar on their platforms
• Nigerians will be hoping for better performance given the increased foreign exchange supply available to the CBN

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Bureau de Change operators increased the selling exchange rate for the US dollar in the black market, also known as the parallel market.

According to traders who spoke to Legit.ng on Wednesday, June 19, a dollar now sells for N1,505 in the black market.

This is higher than the N1,490.1 quoted on Tuesday, June 18, as the country observed public holidays for the Eid-ul-Adha celebration.

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Abudulahi, a BDC trader, told Legit.ng:

"This morning, we buy dollars from Nigerians at N1,470 and sell at N1,505. Our selling rates are not fixed and depend on the amount the customer is trying to buy."

Financial tech companies such as Chipper Cash are quoting N1,654.8 as the exchange rate to sell dollars to customers.

Naira to pounds, euro

It was a different story for the British pound and euro, as they depreciated against the naira on Wednesday morning.

Checks by Legit.ng with different BDC traders on Wednesday, June 19, showed that one British pound could be bought for N1,880, while the exchange rate for euro was put at N1,580.

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Forex traders sell pound, euro at new exchange rate as Naira depreciates

These exchange rates are an improvement compared to the N1,890 and N1,597.39 rates for the pound euro, respectively, on Tuesday, June 18.

Naira expected to improve

The value of the Nigerian currency is predicted to improve in the coming days due to the increased foreign exchange supply now available to the Central Bank of Nigeria.

Legit.ng had earlier reported that on June 6, 2024, the African Export-Import Bank (Afreximbank) announced the release of an additional $925 million for Nigeria's oil-backed prepayment facility.

The funds are part of the $3.3 billion loan from Afreximbank and have been deposited into the Project Gazelle Funding account to help stabilise the foreign exchange market.

CBN issues new directives on street trading

Legit.ng previously reported that the CBN banned street trading of foreign currencies by Bureau de Change (BDC) operators, citing the need to regulate the foreign exchange market properly.

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Good news for naira as CBN announces new support to stabilise foreign exchange market

CBN's director of risk management, Blaise Ijebor, said street trading of foreign currencies is not allowed as the apex bank does not want BDCs under trees.

He said the traders should be in offices where customers can come in and change their currencies.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng