The value of the naira has crashed against the dollar on Wednesday at the parallel market, wiping N15 from its earlier gains during the intraday trading to exchange at N485/$1.
Investogist reported earlier that the value of the naira rose against the U.S dollar on Wednesday at the parallel market as the exchange rate falls to N470/$1, as the Central Bank of Nigeria (CBN) issued new directive on International Money Transfer Operators (IMTOs) on foreign currency payment in cash to beneficiaries of diaspora remittances.
However, as the demand for the green back surged the exchange rate has risen to N485/$1 according to Aboki FX – a prominent FX tracking website at the black market.
Aminu Gwadabe, President Association of Bureaux De Change Operators of Nigeria (ABCON) had attributed the earlier rise in naira value to CBN’s amendment of the procedures for receipt of diaspora remittances.
He said: “Certainly, those hoarding foreign exchange better sell now otherwise they will lick their wounds.”
Commenting on how the new rule will impact dollar supply and the activities in the BDC subsector, Gwadabe said: “The monopoly of (banks) is broken and the policy will induce liquidity in the BDC subsector.
“It is true that the volume of diaspora remittances amidst COVID-19 19 is still huge. In fact, other countries like Kenya and Zimbabwe are recording higher diaspora remittances inflow as a result of skilful medical doctors abroad.
“Nigeria is expected to close the year with over $20 billion diaspora remittances despite the pandemic in 2020. “The beneficiary is free to collect his proceeds in foreign cash currency and trade it in the BDC subsector which will lead to true price equilibrium in the market.”
By: Ifunanya Ikueze
