The naira experienced a further decline against the dollar, reaching 950/$ in the parallel market on Wednesday. This comes after the currency previously closed at 930/$ the day before.
In transactions with Bureau de Change (BDC) operators, the naira ranged between 935/$ and 950/$ on Wednesday, compared to its closing rate of 930/$ on Tuesday. The FMDQ trading platform data revealed that the naira settled at 758.12/$ at the Investor & Exporter forex window, a decline from its 742.10/$ rate on Tuesday.
BDC operator, Yusuf Kareem, expressed concerns about the naira’s depreciation, noting, “The naira has been dwindling, and the exact cause remains uncertain.”
Another operator, Sanusi Ibrahim, echoed this sentiment, stating, “The fluctuating rates are unpredictable, and we’re unsure about tomorrow’s trajectory.”
The Association of Bureaux De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria for digital autonomy for BDC operations. ABCON’s President, Dr. Aminu Gwadabe, believes that transitioning to a fully digital system will foster rate convergence and boost economic growth. He recalled ABCON’s success in achieving rate convergence in previous years, notably before the COVID-19 pandemic.
Dr. Gwadabe emphasized that digital autonomy would ensure a transparent exchange rate determination, align with the government’s forex policies, and enable closer monitoring of BDC transactions for compliance and regulation.
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