Naira Continues Depreciation Amidst Uncertainty in Dollar Sales to BDCs
The Naira continued to experience depreciation in both the parallel and official markets due to speculation and hoarding, compounded by the withdrawal of some Bureaux De Change (BDCs) from the Central Bank of Nigeria’s (CBN) dollar sales program.
The Naira depreciated to N1,435 per dollar in the parallel market, while in the Nigerian Foreign Exchange Market (NAFEM), it fell to N1,421.06 per dollar. This represents a widening margin between the parallel market and NAFEM rates.
Despite the CBN’s efforts to intervene in the retail segment of the forex market by resuming dollar sales to BDCs, operators have complained about the slow disbursement of dollars. Some BDCs have even requested refunds from the CBN due to delays in receiving their allocated dollars.
The slow supply of dollars from the CBN has led to uncertainty in the forex market, prompting speculation and hoarding among traders. People are buying and holding onto dollars in anticipation of further Naira depreciation.
Efforts to obtain a response from the CBN regarding these developments were unsuccessful as the Director of Corporate Communication, Mrs. Hakama Sidi-Ali, did not respond to inquiries from Vanguard.
The slow disbursement of dollars by the CBN has created frustration among BDC operators, with some expressing dissatisfaction over the frequency and volume of interventions from the central bank. Many BDCs have experienced delays in receiving their allocated dollars, prompting some to request refunds.
