"N1,000/$": BDCs Speak on Dollar Selling Cheaper in Black Market Than Official Market

"N1,000/$": BDCs Speak on Dollar Selling Cheaper in Black Market Than Official Market

  • Bureau de Change (BDC) operators have debunked reports that the dollar is selling cheaper in the black market
  • A viral report on social media had alleged that black market operators crashed the dollar to N1,000 per dollar
  • The development comes as the official exchange at NAFEM sold at N1,382.95 per dollar on Tuesday, March 26, 2024

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Bureau de Change (BDC) operators have debunked the claims that the dollar sells cheaper in the black market than in the official market.

The development is in response to reports making the rounds on social media that the US greenback is now selling at N1,000 per dollar in the black market as against the N1,385 sold in the official market it sold on Tuesday, March 26, 2024.

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BDC operators debunk claims of further dollar crash
Black market operators deny dollar selling at N1,000 per dollar Credit: NurPhoto/Contributor
Source: Getty Images

Black market dealers debunk cheaper dollar claims

The black market operators debunked the claims, saying there was no truth in the report.

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A report on X (formerly Twitter) claimed that black market dealers in Abuja have further crashed the dollar price to N1,000 per dollar after buying at N900.

The report said:

“This morning, at Zone 4 Abuja, along the Sheraton Hotel, the dollar is selling at N1,000 – $1. Abdulsalam BDC is selling N900 if buying over $5,000.
“There’s a mad rush to dispose of dollars at Zone 4. The dollar in the parallel market is presently selling at a lower price than the official market.”

Punch reports that one Abdulsallam BDC said on Tuesday, March 26, 2024, that there is no such thing as contained in the report.

Dollar sells at N1,300/$ in black market

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He confirmed that the dollar sells at N1,300 in the parallel market.

A recent report by Legit.ng said that the Central Bank of Nigeria offered to sell about $10,000 to each BDC operator at N1,251 per dollar.

Reports say the apex bank expects the BDCs to sell at most N1,269 per dollar, a margin of N18.

ABCON reveals why naira is appreciating

The development comes as the Bureau de Change Change Operators of Nigeria (ABCON) has revealed that the oversubscription of recent Federal Government of Nigeria (FGN) bonds and other securities positively impacts the naira.

The development has led to the recent appreciation of the naira against the US dollar.

Aminu Gwadabe, ABCON president, disclosed this during an interview with the News Agency of Nigeria (NAN), where he praised CBN’s plethora of reforms, which are meant to control inflation and boost the naira.

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Clearing FX backlogs affecting the naira positively

The ABCON leader said that clearing forex backlogs by the apex bank also has a massive effect on the naira, which improved its prospects against major currencies.

Gwadabe said:

“We are also seeing how they use the securities to attract foreign investments, which are oversubscribed. That also has a lot of positive impact on the exchange rate.”
“We have also seen how they boldly decided to reinstate the BDCs window to deepen the market, which has broken the camel’s back."

Naira appreciates again at official, parallel markets

Legit.ng previously reported that the naira again appreciated against the US dollar in the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data from FMDQ securities showed that the Nigerian currency rose in value to N1,408.04/$1 on Monday, March 25, 2024.

This represents a 1.6% increase in value for the naira, or N23.45, compared with the preceding session's N1,431.49/$1.

Source: Legit.ng

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