Currency Dealers Net Massive Profits As Dollar Scarcity Lingers

Currency dealers, including hawkers, are making tremendous profits from the sale of scarce foreign exchange, a situation beyond the control of the Central Bank of Nigeria.

It was gathered that despite the scarcity of foreign exchange in the economy, billions of dollars are lying fallow with the Deposit Money Banks, Bureux De Change operators and currency hawkers waiting to be sold at parallel market rates to prospective buyers.

Parts of the forex are currently being sold for between N260 and N263 per dollar to various categories of buyers, according to top bank officials and currency dealers.

For intending travellers, Personal Business Allowance and Business Travel Allowance are being sold at the parallel market rate between 260 and 263, instead of the official rate of 199 plus a 3.5 per cent commission prescribed by the Central Bank of Nigeria.

It was learnt that currency dealers, mainly commercial banks, the BDCs and foreign exchange hawkers, were having a field day making bumper profits from the sale of forex with the CBN watching helplessly.

“If you want $20m now at the rate of N263 to a dollar, I will get it for you from the bank,” a currency dealer said on Friday.

“The forex is there but it won’t go for anything less than the parallel market rate; banks have it, the BDCs also have it,” the dealer added.

Banks and the BDCs are meant to sell the BTA and the PTA to intending travellers abroad with valid documents at the official rate of 199 plus 3.5 per cent commission.

This is expected to bring the resale value or the ollar exchange rate to N205.9. Instead of this amount, prescribed by the CBN, the BDCs and banks are selling the PTA and the BTA to thousands of intending travellers at rates above N260.