The naira has continued to depreciate as the dollar shortage gets worse. The naira started trading at $1,175/$ and ended the day at $1,190/$ on the parallel market. The naira had previously traded at 1,100/$ on the black market two weeks prior.
According to data received from the FMDQ, it sold at 808.28/$ at the conclusion of trade on Friday, down from 810.05/$ on Thursday. However, it increased somewhat on the Investor & Exporter FX window.
Some Bureau de Change employees said that the dollar was in short supply since few had foreign currency to offer to clients. Jubril Mutiu, a BDC operator, stated, “On Friday, the price was $1,175, but we don’t even have it. It is not accessible at the moment.
Another BDC operator, Adamu Afeez, said, “We are looking for those to sell to us, but now, we don’t have the dollar to buy. If we don’t have one, we cannot sell.”
Another BDC operator, Ibrahim Abu, said, “We sold for 1,175/$ in the morning till afternoon on Friday. By 2 p.m., it was already selling for 1,190/$. It has been fluctuating. I don’t know what the rate will be on Monday.”
Following the CBN’s directive to the lending institutions to permit the free flow of the country’s exchange rate in June, the naira had continued to depreciate. The naira traded at 471.67/$ on the FMDQ’s official market before to floating, and at 765/$ on the black market in June.
According to Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, for Nigeria to have a stable, robust, and fertile exchange rate, BDCs must fully participate in the retail sector of the foreign currency market.
He said that everyone needed to work together to overcome the obstacles the country’s forex market and the weakening of the naira faced.
He claimed that the BDCs have the necessary licenses to participate in the retail FX 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.”
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