Following the restrictions placed on some items in the Nigerian foreign exchange market as well as the ban on the usage of naira denominated cards outside the country, some Nigerians have resorted to buying dollars from neighboring countries.
Some Nigerians go to Togo, Benin Republic and Ghana, among other neighboring countries to source dollars to send via courier or other means abroad, Leadership investigations reveal.
Also, findings show that speculators taking advantage of the high demand for dollars in Nigeria buy the greenback from outside the country to sell it in Nigeria.
The value of the naira had dropped to an all time low of N283 to the dollar last year but has remained stable since last week at N265.
The apex bank had placed various restrictions on the foreign exchange market, having removed 41 items from the eligible for forex list and reduced the annual and daily spending limits.
It had also backed the move by banks to stop accepting foreign currency deposits as well as the recent ban on the usage of naira denominated cards abroad, a move that has been condemned by many Nigerians especially students living abroad.
Confirming this, the acting president of the Association of Bureau de Change Operators of Nigerian (ABCON), Aminu Gwadabe said “there are people that now buy euro in Nigeria and convert it to dollar and bring it back to sell. The people doing this are traders that make it their business and not BDCs”
He noted that the speculators who follow international exchange rates take advantage of the high demand of dollar in Nigeria. This he said may spike activities at the parallel market affecting the value of the dollar.
