Nigeria’s naira is experiencing a sharp loss to the dollar, a day after the Central Bank of Nigeria banned foreign exchange sales to Bureau De Change (BDC) operators in the country
As of Wednesday, July 28, black market dealers were selling the naira at ₦522 per dollar, up from N505 to $1 on Tuesday, according to abokifx.com.
But at the importer & exporter (I&E) window, the dollar traded for ₦411.52 per dollar.
The current rate is the second weakest since February 2017.
CBN governor Godwin Emefiele Tuesday said the ban was necessary because the parallel market has become a conduit for illicit forex flows and graft.
“We are concerned that BDCs have allowed themselves to be used for graft,” Emefiele said in a live TV broadcast after the bank has retained its benchmark policy rate.
“This measure is not punitive on anyone, but it is to ensure the CBN is able to carry out its legitimate mandate of serving all Nigerians.”
Emefiele stated that commercial banks are mandated to immediately and transparently sell forex to customers who present the required documents, saying all banks are to immediately create dedicated tellers for the same purpose.
While some economists have applauded the CBN’s courage to impose the ban, others fear that it may be forced to reverse the ban with internal and external pressures.
Nigeria’s inflation rate in June dropped further for the second consecutive month to stand at 17.93% in May 2021 from 18.12% recorded in April 2021, according to the Consumer Price Index report released by the National Bureau of Statistics (NBS).
According to the report, the consumer price index, (CPI) which measures the inflation rate increased by 17.93% (year-on-year) in May 2021. This is 0.19% points lower than the rate recorded in April 2021 (18.12%).