Bureau De Change Operators Sell Dollar At N900, As Scarcity Affects Nigerians

The naira and dollar exchange rate traded flat on Monday in the official foreign exchange market of the Investors and Exporters window.

Data obtained showed that the naira maintained stability against the United States’ currency at N445.50 kobo/$1. This was the rate they exchanged for on Friday.

At the end of trading, it was gathered that $206.25 million worth of transactions was recorded, rising above the $94.04 million transacted on Friday.

Meanwhile, on the black market on Tuesday, the Bureau De Change operators placed the cost of buying one dollar between N870/$1 and N900/$1 in Ikotun and Isolo, respectively, in area of Lagos State.

During the previous trading day at the parallel market, the least one of the Bureau De Change was willing to sell was at N820/$1, and the highest dollar rate mentioned was N900.

The exchange rate between the dollar and the naira in both the black market and the official market have a gap of over N300, but both forex window are experiencing dollar scarcity.

Prime Business Africa understands that the scarcity was initially caused by the COVID-19 pandemic that shutdown industries, especially the oil and gas sector, as well as the aviation market, both of which account largely for Nigeria’s foreign reserves.

Despite nations profiting from the skyrocketing oil price after the lockdown was lifted, Nigerian couldn’t benefit from the high price, which would have increased our foreign reserves, due to poor refinery.

The scarcity of dollars is now biting Nigerians demanding for the USD either in the black market or the official market.

Meanwhile, Bureau De Change raid by the Economic and Financial Crimes Commission (EFCC) is said to also contribute to the hike in dollar rate.

Prime Business Africa had reported five days ago that the anti-graft agency raided Bureau De Change centers in Kano State to arrest operators without license.

A BDC operators said, “Every time they raid this market, the price of dollar will go up. For instance, today (Wednesday) a dollar is N845 as against N835 it was being sold yesterday (Tuesday) before the EFCC raided us.

“In fact, last week we were selling it at N750 but before the end of the week, it went up to N780. Problem is that it is because the government is not releasing dollars. The hike is not our fault. We buy expensive, so we have to sell it in a way to make a little profit.”