Dollar Continues To Crash As CBN Policies Affect BDC Operators

The Central Bank of Nigeria’s (CBN) recent policies in the forex market which has been applauded by a lot of Nigerians has translated into woes for black market currency traders who have seen their customers dropped drastically.

According to Leadership, Godwin Emefiele who is the governor of the CBN spoke at the end of the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, March 21 where he said the new policies from the apex bank would be sustained thereby droving the Dollar down in comparison to the naira.

The Naira rose to N390 on Wednesday, March 22 while it also appreciated against the Pound Sterling and Euro rate at N510 and N415 respectively.

Operators and experts have also predicted that this trend will continue for a long time.

The CBN had sold dollars at the interbank and bureau de change market thereby clearing backlog of dollar demands and meeting forward contracts, as well as BTA/PTA, school fees and medical fees demand.

Emefiele had caution operators not to stock dollars as the price would still continue to crash.

Nigeria’s crude oil production has continued to rise with the fact that militants have stopped the bombing of oil and gas pipelines while Nigeria’s foreign reserves this month crossed the $30 billion mark and is currently trending towards $31 billion.

Black market currency traders in Lagos last night said the value of the naira had risen to N415 by afternoon and rose further to N395 by the close of business in the evening.

Tijanni Jos who is one of the operators of the Bureau de Change lamented that the development had caused them so much loss as many people have stopped patronising them.

He said operators did not envisage a quick downfall of the dollar which has caused them to buy at an expensive rate, hoping to make returns.

Jubril who is also a currency trader said: “I have not been able to sell the dollars that I have with me because I bought it at N420 and now it is priced at N395. People are not buying, they are selling and I believe that the naira will go up more this week and next week”.

Aminu Gwadabe who is the president of the Association of Bureau de Change Operators (ABCON) said most of the operators have been badly affected as they did not envisage a sharp fall.

He said: “People are not buying dollars anymore for now. They are waiting for a level where the CBN cannot go beyond before they demand for dollars again.”

He said increased inflow from crude oil sales was bringing in “nothing less than $30 million everyday for the country”.

“We are saving about $13 per barrel through the difference between the benchmark and selling price of oil. The selling price is about $56/57 per barrel, while our benchmark is $40.

“This has increased our buffers and then there is the foreign exchange that is expected to come in through the various loans. If all these come into play, then the CBN will be able to sustain the interventions and meet all legitimate demand”.

Dr. Tayo Bello applauded the CBN for plugging loopholes and making great policies.

He said: ‘‘What we had before was an unprecendedted demand for forex fuelled by unprecedented corruption where people look for forex which are not being chamnnlled into productive uses but now CBN is nomlising everything”.

“Dollar will still sell for N250 in the few weeks to come. Currency speculators are in trouble because what happened in the stock market when the bubble burst is already happening to them.”