Naira’s Slide Continues: Hits 950/$ at Parallel Market Amid Calls for Digital Autonomy

The Nigerian naira experienced a further depreciation against the US dollar on Wednesday at the parallel market as it closed at N950 to a US Dollar.

This downturn follows Tuesday’s closing rate of 930/$, causing unease among Bureau de Change (BDC) operators and the broader financial community.

BDC operators, who are at the forefront of currency exchange transactions, expressed their concerns over the naira’s recent erratic behavior. On Wednesday, the naira was being bought and sold at rates between 935/$ and 950/$, reflecting the currency’s increasing volatility.

Yusuf Kareem, a BDC operator, lamented the scarcity of the naira and the unexplained fluctuations in its value, saying, “We commenced trading at 930/$ in the morning and it closed at 950/$ in the evening. The naira has been scarce; we don’t know what is happening.”

Sanusi Ibrahim, another BDC operator, echoed these sentiments, saying, “The naira was bought and sold at 935/$ and 950/$ today. We don’t know what will happen tomorrow.”

Amid this financial turbulence, the Association of Bureaux De Change Operators of Nigeria (ABCON) has made a compelling call to the Central Bank of Nigeria (CBN). They are urging the CBN to grant Bureaux De Change operators digital autonomy to facilitate exchange rate convergence and stabilize the market.

In a statement issued by the President of ABCON, Dr. Aminu Gwadabe, he underscores the importance of this digital transformation, stating that it could “promote rate convergence, curb volatility in the market, and promote economic growth.”

Dr. Gwadabe further pointed out that ABCON had previously played a crucial role in achieving rate convergence in various periods from 2006 to 2020.

Granting digital autonomy to BDC operators, according to Dr. Gwadabe, would lead to the discovery of a true market rate, enhance the implementation of the Federal Government’s harmonized foreign exchange rate policies, and enable effective monitoring of BDCs’ transactions to meet statutory and regulatory requirements.

The recent depreciation of the naira and the calls for digital transformation have raised questions about the stability of Nigeria’s currency and the steps needed to ensure its resilience in the face of economic challenges. As the nation watches anxiously, the future of the naira and the actions of the Central Bank remain topics of intense scrutiny and debate.