Again, Naira tumbles exchanges 1,190/$
The dollar is becoming scarcer, and the naira has continued its downward trajectory.
The naira opened trading at 1,175/$ on the parallel market and ended the day at 1,190/$.
The naira had traded at 1,100/$ on the black market two weeks prior.
However, based on data from the FMDQ, it increased somewhat on the Investor & Exporter FX window after selling at 808.28/$ at the end of trading on Friday, having previously traded at 810.05/$ on Thursday.
Some Bureau de Change Operators noted that the dollar was scarce as many did not have forex to sell to customers.
A BDC operator, Jubril Mutiu, said, “On Friday, the price was 1,175/$, but we don’t even have it. It is not available right now.”
Another BDC operator, Adamu Afeez, said, “We are looking for those to sell to us, but now, we don’t have the dollar to buy. If we don’t have one, we cannot sell.”
Another BDC operator, Ibrahim Abu, said, “We sold for 1,175/$ in the morning till afternoon on Friday. By 2 p.m., it was already selling for 1,190/$. It has been fluctuating. I don’t know what the rate will be on Monday.”
The naira had continued to maintain devaluation following the CBN’s order to the lending institutions to allow the free flow of the country’s exchange rate in June.
Before floating the naira, it traded at the official market on the FMDQ at 471.67/$ and at the parallel market at 765/$ in June.
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The President, Association of Bureaux De Change Operators of Nigeria, Dr Aminu Gwadabe, said achieving a stable, strong, and virile exchange rate in Nigeria would require full participation of BDCs in the retail segment of the forex exchange market.
He said the challenges confronting the nation’s forex market and depreciation of the naira required cooperation from all.
The BDCs, he said, were licensed to play at the retail end of the forex market and should be fully involved in providing lasting solutions to the ongoing volatility in the exchange rate.
Gwadabe said, “The continuous depreciation of the naira in official and parallel markets does not benefit the BDCs and the domestic economy. Hence, steps should be taken to reverse the trend and strengthen the local currency for maximum economic impact.”
According to him, the regulator’s sincere intent to establish exchange rate stability was demonstrated by the apex bank’s various attempts to close the gaps in exchange rates. However, involving the BDCs in the solution would yield the intended outcomes of a highly liquid market and stable rates.
According to Gwadabe, the BDC sector continues to be deeply concerned about the market’s illiquidity, just like it is with every other market segment.
In addition to the lack of liquidity in the market, he stated that ABCON was dissatisfied with the unregistered forex dealers in the core of speculative activity, which was harming the subsector’s reputation.