Naira has failed to sustain the rally seen in the previous week as it further depreciated at the parallel market on Wednesday.
The exchange rate fell to N515 per dollar on Wednesday, a N5 decline compared to N510 per dollar it closed on Tuesday, according to the data on AbokiFX, which tracks parallel market rates – popularly known as the black market.
Naira strengthened in the previous week following the Central Bank’s instruction to banks not to refuse any forex request with proper documentation.
Nevertheless, pressure returned at the parallel market as customers complain of tedious documentation processes at the banks, coupled with different levels of approvals which are usually not met on short notice.
The CBN at the end of its Monetary Policy Committee meeting held in Abuja on Tuesday July 27, announced that it has stopped the sale of forex to the Bureau De Change (BDC) operators in the country with immediate effect.
The CBN Governor, Godwin Emefiele, while making the announcement said that the MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail users.
He said that BDCs had become wholesale and illegal dealers, and had continued to make huge profits while Nigerians suffered in pain.
Emefiele said that the CBN weekly sales of foreign exchange will henceforth go directly to commercial banks.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.