The naira has maintained its downward trend as the scarcity of the dollar bites harder, commencing trading in the parallel market at 1,175/$ and closing at 1,190/$ on Friday, The PUNCH reports.
Two weeks earlier, the naira had traded at 1,100/$ at the parallel market.
It, however, appreciated slightly on the Investor & Exporter forex window after it sold at 808.28/$ at the close of trading on Friday, from 810.05/$ on Thursday, according to figures obtained from the FMDQ.
Some Bureau de Change Operators who spoke to The PUNCH 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 until the afternoon on Friday. By 2 p.m., it was already selling for 1,190/$. It has been fluctuating. I don’t know what the rate will be on Monday.”
After the CBN ordered the lending institutions to allow the free flow of the nation’s currency rate in June, the devaluation of the naira persisted.
The naira traded at 471.67/$ on the FMDQ official market before floating, and in June it traded at 765/$ on the parallel market.
Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, stated that BDCs must fully participate in the retail segment of the foreign currency market in order to get a stable, robust, and healthy exchange rate in Nigeria.
He emphasised that everyone needed to work together to address the issues facing the country’s currency market and the naira’s depreciation.
He asserted that the BDCs had the authority to operate in the retail segment of the foreign exchange market and ought to be actively engaged in offering enduring remedies for the continuous fluctuations in the exchange rate.
Gwadabe said, “The continuous depreciation of the naira in official and parallel markets does not benefit the BDCs or 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.
Gwadabe stated that the market’s illiquidity continued to be a major worry for the BDC sector, just like it did for every other market area.
In addition to the lack of liquidity in the market, he stated that ABCON was dissatisfied with the unregistered forex dealers’ speculative activity, which was harming the subsector’s reputation.
