Naira now N670 to dollar

The naira fell further in the parallel market to trade for N670 against the U.S. dollar on exchange platform Aboki Forex, according to checks by Peoples Gazette.

While the naira fell in value on the black market, it remained N430 to the dollar at the official NAFEX market.

The continuous depreciation of the naira comes a year after the Central Bank of Nigeria (CBN) prohibited the sale of forex to bureau de change operators.

The apex bank had a year ago banned the sale of forex to BDC operators, citing the illegal sale of forex above the market they were licensed to serve.

Before the ban, BDC operators had long been a major black market, providing exchange rate support to those unable to formally access foreign currencies directly from the CBN.

Recall that Peoples Gazette had projected that the suspension of BDC operators’ ability to source foreign exchange from the CBN could have a significant impact on the country’s economy and bring naira under further pressure.

When CBN Governor Godwin Emefiele banned the sale of forex to BDC, the exchange rate was around N501 to a dollar, however, a year after the ban, the value of the naira has plummeted to N670 to a dollar.

In an attempt to further restrict the flow of forex at the parallel market, the apex bank last week threatened to arrest and prosecute Nigerians using naira to buy dollars.

“For those taking money from banks to buy dollars, it is illegal to do so. If the security agencies hold you, you will know the implication of that,” Mr Emefiele said at a Monetary Policy Committee (MPC) meeting in Lagos.