Nigeria’s apex bank isn’t backing down to reduce the influence of Bureau De Change operation on foreign exchange in Nigeria, research showed that banks now receive more than 200% of forex supply from the Central Bank of Nigeria (CBN).
“No country in the world leaves its forex market in the hands of black marketers without consequences”.
The new policy on forex also saw the apex bank directing the commercial banks to set up a special unit to quickly attend and address the demand of Nigerians who need dollars and other foreign currencies for business and personal travel allowance needs, details of which are captured in one of our reports at: https://infomediang.com/forex-for-personal-travel-allowance-bta
The latest move by the CBN followed its announcement on July 27, 2021, to discontinue the sales of forex to BDCs, describing them as agents of money laundry, saying they’ve failed to meet the purpose of which they were established.
Does CBN Mean Business?
When Godwin Emefiele, CBN governor, made the position of the government known on July 27, some financial analysts believed it was another announcement by officials that are not implemented.
But going by the report InfomediaNG got from banks, more dollars, Pounds, Euros, and other high-demand currencies have now increased by over 200%
Banks now receive $4, 000,000 as against $1.3 million allocations from the Emefiele-led apex bank, it was revealed.
An analyst who described the CBN’s action as a good decision in the right direction submitted that “no country in the world leaves its forex market in the hands of black marketers without consequences”.
Before the CBN took the decision, BDC operators were gradually becoming forex price determinants.
Severally, the apex bank had had to adjust its official rate to slightly close the gap between the parallel market and the official rate.
Is the market responding?
A few hours after the July 27 audacious move by the CBN against the BDCs, naira fell to its lowest value ever as one USD traded N525 against the Nigerian currency.
However, it’s gradually bouncing back to its pre-new CBN policy value. At the time of this report (August 10, 2021), it’s $/N510 at the parallel market while the CBN rate was peg at N409.61 to one USD.
Would it be a daydream to be optimistic that the new policy would return the naira to its 1970s value? That was when one U.S. dollar to naira was N0.658.