GTbank, Black Market Traders Sell Dollar at New Exchange Rate
- Black market traders has adjusted the exchange rate for the naira against the US dollar and also pound, euro
- The changes reflect the current market situation but relative stable when compared to previous years festive period
- Only 82 bureau de change operators have been licensed under the CBN’s revised rules, as authorities warn the public to transact only with approved operators
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Black market currency traders in Nigeria have adjusted their exchange rates, selling the U.S. dollar at about ₦1,478 as the naira showed signs of strength at the official foreign exchange market at the start of the week.
Checks on Monday showed that the greenback was exchanged in the parallel market at around N1,485 per dollar, a slight fall from the previous rate of N1,478.
While the British pound traded at about N2,204.40, the euro at N1,754 and the Canadian dollar at N1,093
Source: Getty Images
The rates reflect continued volatility in the retail segment of the market, despite recent interventions by the Central Bank of Nigeria (CBN).
Naira at official market
At the Nigerian Foreign Exchange Market (NAFEM), the naira appreciated against the dollar by N7.93, or 0.54%, to close at N1,456.56/$1 on Monday, compared with N1,464.49/$1 at the end of last week.
The local currency also strengthened against the euro, gaining N4.04 to settle at N1,710.59/€1 from N1,714.63/€1 in the previous session.
However, the naira was marginally weaker against the pound sterling, slipping by three kobo to close at ₦1,957.33/£1, compared with N1,957.30/£1 previously.
Market operators said the naira’s relative stability at the official window was partly supported by CBN intervention sales, even as seasonal demand pressures persist.
The apex bank recently sold about $150 million to authorised dealers and banks in an effort to ease dollar shortages and dampen speculative demand.
Analysts note that while the intervention has reduced pressure on the currency, it has not fully eliminated demand-supply imbalances.
Source: Getty Images
BDC traders
Meanwhile, uncertainty continues to surround the retail foreign exchange market following the CBN’s ongoing reforms of bureau de change (BDC) operations.
Several BDCs currently operating at the Murtala Muhammed International Airport (MMIA), Lagos, are not included in the list of 82 operators granted final approval under the CBN’s revised regulatory framework released in December.
Findings show that some airport-based operators maintain visible trading points despite not appearing on the list of licensed BDCs published by the CBN.
The apex bank has stated that only operators listed on its website are authorised to carry out BDC business, following the withdrawal of licences from firms that failed to meet recapitalisation deadlines.
The Association of Bureau De Change Operators of Nigeria (ABCON) said the 82 approved operators represent only the first batch, noting that more approvals are expected as applications are reviewed.
ABCON President Aminu Gwadebe said many operators are still completing documentation and capital requirements after the sharp increase in minimum capital to N2 billion for Tier 1 licences and N500 million for Tier 2 licences.
The CBN has advised the public to verify the status of BDC operators through official channels, reiterating that enforcement actions will continue as it seeks to sanitise the retail forex market and support exchange rate stability.
CBN releases new rule for dollar card use at ATMs, POS
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to reconfigure all automated teller machines (ATMs), point-of-sale (PoS) terminals and virtual payment platforms to seamlessly accept foreign-issued payment cards across the country.
The directive was captured in a circular signed by Rita Sike, the Director of the Financial Policy and Regulation Department.
The apex bank noted that the directive is aimed at ensuring uninterrupted and efficient transactions for users of international cards.
Source: Legit.ng
