Naira strengthens to N665/$ at parallel market — days after EFCC raided BDC hub

The naira, on Tuesday, sustained its momentum at the parallel market, appreciating to N665 per dollar a few days after security operatives raided Bureaux De Change (BDC) hub in Abuja.

The development represents N30 or 4.3 percent gain compared to the N695 to a dollar on Monday.

Currency traders known as Bureaux De Change operators (BDCs) at the Ikeja area of Lagos, who spoke to TheCable, quoted the buying rate of the greenback at N650 and the selling price at N665 per dollar.

According to the traders, the gains are largely influenced by increased dollar liquidity in the market.

“Dollar is plenty in the market now. Some oil companies also brought out dollars to sell,” a BDC operator told TheCable.

On the official market side, the naira appreciated by 0.03 percent to close at N428.88 to a dollar on Monday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

Last week, operatives of the Economic and Financial Crimes Commission (EFCC) raided Wuse Zone 4, Federal Capital Territory, Abuja, over allegations that some Bureaux De Change (BDC) operators are mopping up foreign currencies.

“The raid by EFCC in Abuja BDCs last week dampened demand,” a source told TheCable.

“There were large buyers last week that many had to queue up!

“The current situation tells you that if you allow the market to work, it will find its level. We were blaming aboki fx before.”

Aminu Gwadabe, president of the Association of Bureaux De Change (BDC) operators, told TheCable that the “market surveillance” was done in collaboration with the association.

“We have a cordial relationship with the security agencies and ongoing collaboration with the agencies on the exchange rate issues,” he said.

The Central Bank of Nigeria (CBN) regularly intervenes in the official foreign exchange market to maintain stability.

Last week, Osita Nwasinobi, spokesperson of the CBN, said the apex bank would continue to make deliberate efforts in the forex sector to avoid further downward slides in the value of the naira.

He further advised forex buyers not to succumb to speculative activities of some players in the FX market to save the naira from further decline.