BDC Operators Lament As US Dollar Crashes To 550 Naira At Lagos Black Market

BDC Operators Lament As US Dollar Crashes To 550 Naira At Lagos Black Market

Infoexpert24 reports that the US dollar crash against Nigeria’s official currency, the naira on Tuesday, was a cause for concern for BDC operators who lamented to sudden fall in the market of the dollar to the naira exchange rate.

One of the BDC operators who spoke to Infoexpert24 on Tuesday evening expressed bitterness that the market is no longer lucrative as it used to be some months ago, putting the blame on CBN vs Aboki FX saga.

“Since Aboki FX stopped publishing rates, we are a bit confused. Before, we check Aboki FX in the morning before we trade but now we have to call our brothers (other BDC operators in different locations) before we know what to buy and sell. This is not good”, he lamented.

Another disgruntled BDC operator told Infoexpert24 reporter that: “Dollar crashed to ₦550 this evening, though in the morning it was ₦560“, he said after which he lamented in pidgin English, saying: “Di way dis dollar dey fall no good, business just spoil. I pray say e go rise tomorrow (referring to today, November 10).

While most of the operators lamented, one BDC operator, on the other hand, expressed optimism that the dollar will rise again before or during the festive season.

“Before December we will see a rise, it might go back to ₦560 per dollar because many people will be looking for dollars.

VP Osinbajo’s advice to CBN over Dollar to naira exchange rate

Meanwhile, Infoexpert24 reports that the dollar to naira exchange rate today is coming after Nigeria’s Vice President, Prof. Yemi Osinbajo, called on the Central Bank of Nigeria (CBN) led by Godwin Emefiele last month to allow the naira to reflect the realities of the market.

The Vice President had said the exchange rate is artificially low and deterring investors from bringing foreign exchange into the country.

“Prof. Osinbajo is not calling for the devaluation of the Naira. He has at all times argued against a willy-nilly devaluation of the Naira,” Laolu Akande, spokesperson to Vice-President had explained in a statement.

“For context, the Vice-President’s point was that currently, the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.

“It is stopping this huge arbitrage of over N160 per dollar that the Vice-President was talking about. Such a massive difference discourages doing proper business when selling the dollar can bring in 40% profit!

“This was why the Vice-President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.