Naira dropped to N390/$1

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The improving fortune of the naira in the parallel market was Thursday halted as it depreciated to N390 against the dollar.


Meanwhile the Central Bank of Nigeria (CBN) Thursday increased weekly dollar sales to bureau de change (BDCs) to $10,000 per week. It also sold another $100 million in 60 days forward transactions. Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okoroafor disclosed these this development saying the apex bank from next week will commence twice weekly forex sales to BDCs and that a new exchange rate will be announced on Monday April 3rd, 2017.

“Licensed BDC operators are therefore required to fund their accounts with the CBN on Mondays and Wednesdays, while they receive their purchases on Tuesdays and Thursdays respectively. The sale amount to BDCs is hereby increased to $10,000 weekly ($5,000 per bid) and a new rate will be announced on Monday, April 3, 2017,” he said.

The parallel market exchange rate which dropped further to N380 per dollar on Tuesday from N390 per dollar last week, suddenly jumped back to N390 per dollar yesterday due to scarcity of dollars in the market. BDC operators confirmed this development saying banks are no longer selling dollars for invisibles to end-users. They also said the higher exchange rate offered by Western Union and Moneygram to beneficiaries of remittances is denying the market of dollar supply. Commenting on this development, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe said: “The situation is bad. The banks are not selling CBN dollars for invisibles.

They said that they are withdrawing from buying dollars from CBN for invisibles, claiming they suffered huge losses when the CBN suddenly reduced the exchange rate for invisibles to N360 per dollar on Monday.” Also BDC operator, Mr. Yomi Olasanya, told newsmen “The biggest problem in the market now Western Union. The parallel market rate went up today because Western Union is buying dollars off beneficiaries of remittances at N375 per dollar.

If somebody sends dollars to you from abroad through Western Union or Moneygram, when you get to the banks, they will offer to pay you in naira at exchange rate of N375 per dollar, which is higher than what they will get from the market. That is why dollar is not coming into the market. Go and check, most people sending money from aboard now do so through Western Union and Moneygram”.