Naira Crashes Against Dollar by 3.4% After Forex Ban to BDC

…N1 Now N522 to $1

Naira crashes against dollar by 3.4 per cent, just as some financial experts predicted that the action by the Federal Government to ban Forex sales to Bureau De Change, BDC Operators would bring severe consequences.

The naira decreased at Lagos parallel markets immediately after the Central Bank of Nigeria decided to cease transactions with BDC.

When filing the report, our correspondent gathered that N1 in the Lagos market went from N505 to $1, then hours later, skyrocketed to N522 to the same dollar.

According to Abokifx, a platform that provides information on foreign exchange market rates, the ratio presently stands at five hundred and twenty-two naira, contrary to what is displayed on CBN’s website – four hundred and ten naira (N410).

Meanwhile, the apex bank’s site also shows access to foreign exchange at a limited rate, as most Forex users in Nigeria rely on BDCs or the parallel market for foreign transactions.

Naira Crashes Against Dollar

On Tuesday, reported that the Central Bank of Nigeria, CBN, condemned the actions of Bureau De Change, BDC Operators, for conducting illegal forex trading.

The Apex Bank promised to cease all operations with the group and vowed that it would never again grant operating licenses to new BDC transactors in the country.

Emefiele disclosed this while addressing journalists during CBN’s Monetary Policy Committee, MPC briefing, stating that it already halted all current processes for new permits to the operators.

While making these announcements, the Governor promised to deal “ruthlessly” with Nigerian banks caught in these illegal acts.

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