Forex

DSS Raids Forex Dealers in Lagos, Abuja

Published

7 years ago

November 11, 2016

Dollar to Naira Exchange Rate - Investors King

DSS Raids Forex Dealers in Lagos, Abuja

Operatives of the Department of State Security on Thursday arrested some unregistered Bureau De Change operators in Lagos and Abuja.

Also raided by the DSS operatives were registered BDCs operators who were accused of selling the dollar above N400.

The development, forex dealers said, forced some of the BDC operators to seek means of selling foreign currencies in their possession, especially dollars, pounds and euros at stipulated rates.

A licensed BDC operator in Abuja, Alhaji Yusuf Rabiu, told the News Agency of Nigeria that the raid on the registered operators made some of them to reach an agreement on how much the various foreign currencies should be sold for.

On Wednesday, the DSS had raided the offices of some BDC in Lagos and Abuja, arresting operators selling above the stipulated exchange rate.

The DSS operatives posed as end-users who came to purchase dollars from the BDCs. After surveying the market for exchange rate offerings, they arrested some BDC operators who sold above the Central Bank of Nigeria’s stipulated rates.

Rabiu said, “On Monday, the EFCC called so many licensed BDC operators. The issue is that they feel we are unnecessarily hiking the rates. But it’s not our fault.

“Right now, their focus is on our business; they have been calling us one by one and we don’t want problems. That is why we have agreed to have a fixed rate for now. After the raid in Lagos, the Abuja operators met and agreed on a fixed rate.”

Another trader told Reuters that security agents visiting the BDC operators told dealers not to sell dollars for more than N395.

“We’ve stopped buying dollars from just anybody that walks into our shops due to the harassment from security agents and a directive from our association,” said a dealer, who spoke on condition of anonymity.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the association had this week inaugurated committees to ensure that members complied with its regulations on exchange rates.

He said ABCON was working with the CBN to ensure that speculators, illegal operators and errant members were dealt with.

Gwadabe added that licensed dealers had agreed with the central bank and the security agencies to enforce a rate of N390 to N400 to the dollar.

“The issue of naira depreciation has been narrowed to the activities of speculators and we have decided, with the cooperation of both the central bank and the security agents, to enforce a new rule on pricing,” he said.

But economic and financial experts said the approach of arresting the operators would not work.

A currency analyst at Ecobank Nigeria, Mr. Kunle Ezun said, “We cannot control the naira value or exchange rate by fiat. It is beyond that. Until there is enough liquidity in the foreign exchange market, we cannot do that. The DSS raiding the BDCs will only add to the problem. That is not how to stabilise or bring down the exchange rate.

“Exchange rate control cannot come by fiat. When the CBN began the flexible exchange rate policy in June, a lot of things were done. We need to look into this clearly. The issue at the market now is lack of liquidity and this cannot be addressed in the short-term. We should allow a full-fledged interbank rate; transparency and price discovery are key elements of the market.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

22 hours ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,020 and sell it at N1,010 on Thursday, April 18th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

2 days ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,050 and sell it at N1,040 on Wednesday, April 17th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.