New Telegraph

Naira strengthens to N508/$1 at parallel market

The naira strengthened to N508/$1 at the parallel market yesterday compared with N512 per dollar on Monday, data obtained from abokiFX.com (a website that collates parallel rates in Lagos), shows. At the Investors and Exporters’ (I&E) window, the naira remained flat at N411.50 per dollar, according to FMDQ. The local currency had dropped to a record low of N525 per dollar at the parallel market last Wednesday twenty four hours after the Central Bank of Nigeria (CBN) said it would no longer sell forex to Bureaux De Change (BDC) operators. CBN Governor, Mr. Godwin Emefiele, announced at the end of the Monetary Policy Committee (MPC) meeting on Tuesday that the apex bank had discontinued the sales of forex to BDC operators in the country with immediate effect.He explained that the BDCs had defeated their purpose of existence to provide forex to retail users, but instead, had become wholesale and illegal dealers, thereby becoming a conduit for illicit forex flows and graft. He disclosed that the weekly sales of foreign exchange by the CBN would henceforth go directly to commercial banks, in order for them to meet legitimate foreign exchange demands, adding that the regulator would monitor lenders to ensure that they sell forex to every customer who meet its requirements.

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