The Naira made a massive gain in the FOREX on Tuesday as the exchange rate of the naira to 1 US dollar closed N365 at the parallel markets in Ibadan, the capital of Oyo State, operators also warned of further crash before Friday.
It was revealed that the continued crash of the US dollar was not unconnected with the interventions in the market by the Central Bank of Nigeria. The operators at the various bureau de Change in the Ibadan say there may be no end to the free fall of the dollar as far as the CBN continues to flood the market with dollars.
The naira which was exchanged for N365 per dollar on Tuesday was against N385 to a dollar it was exchanged only last night. The Naira also gained when exchanged the pounds and Euro as it was exchanged for N440 against the Pounds while the Euro went for N395.
Hitherto the CBN sold dollars to BDCs at N381 per dollar and mandates them to sell at maximum of N399 per dollar. However, BDCs expect that the apex bank will this week review these rates downward given the appreciation of the naira in the parallel market.
A BDC chief executive, said: “The market is stagnant. We are expecting the CBN to review our rates, so for now nobody is willing to buy, except the seller is willing to sell at any rate agreeable to the BDC.”
President, Association of Bureaux de Change Operators of Nigeria, ABCON, Alhaji Aminu Gwadabe said: “The situation is really frustrating. With the dollar selling at N380 in the parallel market, how can we sell at N400 per dollar?
“It is now unfair that the CBN has reduced the bank rate for invisibles to N360 per dollar. We hope that they will review the selling rate to BDCs.”, otherwise it would be difficult for our members to participate in the CBN’s weekly dollar sale.”
The Central Bank of Nigeria (CBN) has reviewed down the rate at which it was selling dollars to Bureau De Change (BDC) operators nationwide.