Naira crashes to N246 in unofficial market

The naira, yesterday, fell 1.22 per cent against the dollar on the unofficial market as 1,700 bureaux de change (BDC) operators failed to get dollar supply at a Central Bank of Nigeria (CBN) sale due to incomplete documentation.

The naira was quoted at 246 against the dollar on the unofficial market, weaker than 243 the previous day.

About 1,700 BDC agents out of 2,818 operators were denied access to participate in the forex sale on Wednesday, limiting dollar supply, Aminu Gwadabe, president of Nigeria’s bureau de change association, disclosed.

The naira fall was intensified after the CBN mandated BDC operators to get Bank Verification Numbers (BVNs) of customers buying foreign exchange. The policy implementation, which started on November 1, has reduced the volume of dollars sold by BDCs and created dollar scarcity in the market.

The CBN has insisted that the adoption of BVN as a condition for the purchase of forex is expected to reduce the incidence of multiple purchases, round tripping and illicit transfer of funds, facilitate enforcement of authorised limits of forex sales to end users, sanitise the retail segment of the market and engender policies that will facilitate better allocation of forex, based on genuine demands.

The Nation

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