Naira Depreciates Further Against the Dollar: N980 – $1

The Nigerian naira has continued its decline in value against the United States dollar, with an exchange rate of 980 naira to 1 dollar recorded in the parallel market on Wednesday. Just a week earlier, the naira had traded at 950 naira to the dollar, indicating a further depreciation.

Bureau de Change (BDC) operators have attributed this fall to a scarcity of foreign currency in the market. Idris Musa, a BDC operator, expressed the challenges faced, stating, “We bought and sold the naira today at 965 naira and 980 naira to the dollar. The dollar is not even available.” Another operator, Yusuf Kareem, echoed this sentiment, adding, “The dollar was sold for 980 today. We don’t know if it will continue to go up or if it can come down.”

In contrast, at the Investor & Exporter forex window on the FMDQ platform, the naira appreciated slightly, closing at 770.71 naira to the dollar on Wednesday, up from 776.76 naira the previous day.

The Association of Bureaux De Change Operators of Nigeria (ABCON) has recently called on the Central Bank of Nigeria (CBN) to grant digital autonomy to BDC operators to help achieve exchange rate convergence. ABCON President Dr. Aminu Gwadabe urged the CBN to approve BDCs for full digital operations in their correspondences.

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Gwadabe emphasized that foreign currencies exchanged by BDCs are derived from various sources, including private channels and CBN windows, for purposes such as Business Travel Allowance, Personal Travel Allowance, school fees payments abroad, medical expenses, mortgage, personal home remittances, and subscriptions.

ABCON has also taken measures to ensure compliance among its members, particularly in terms of monthly result reporting and tracking illicit capital flows. These efforts aim to enhance transparency and accountability within the BDC sector.

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