EFCC raids speculators as naira drops to 1,520/$

Men of the Economic Financial Crimes Commission, on Tuesday, expanded its clampdown on Bureau De Change operators, arresting traders in Abuja, Lagos, Kano and Port Harcourt.

This came as the naira weakened further against the United States dollar at both the official and parallel foreign exchange markets.

The recent raids followed renewed efforts by the Federal Government to tackle the naira’s recent fall against the greenback.

The activities of currency speculators in the forex markets and the digital cryptocurrency space have reportedly increased pressure on the naira, with the government accusing crypto traders of speculating against the national currency.

Last week, some BDC operators were arrested in Abuja for allegedly speculating against the naira.

Despite resistance by some BDC operators, law enforcement officials have continued to conduct regular raids on unauthorised currency traders in the Federal Capital Territory.

Currency operators, who spoke to one of our correspondents, confirmed that the latest sting operations occurred at various times during the day in Lagos, Kano Port Harcourt and Abuja on Monday.

Malam Yahu, a trader at the popular Wuse Zone 4 market, said currency traders at Lagos, Port Harcourt and Kano confirmed sting operation by EFCC operatives, a development that disrupted market activities.

He said the fear also trickled down to the Abuja market as traders decided to reduce trading for fear of being arrested.

Yahu also said the naira was bought and sold for N1,520/$ and 1,540/$.

He said, “The naira is now N1,540 and we are buying at N1,520. But the issue now is that the EFCC guys scattered the market in Lagos, Port Harcourt and Kano today. As a result of the development, the traders in Abuja were very cautious about trading.

“So in Abuja today, people are afraid because we don’t know when they will come too and nobody wants to be arrested. It is also part of the reason for the high rate.

“Traders are also afraid of buying at a high price because they are cautious that the dollar may crash at any time. Our brothers in Lagos and Port Harcourt are complaining about the arrests.

Another trader, Abubakar Taura, confirmed the same rates and the arrests by security agents.

“Yes, we heard today that EFCC operatives have started arresting people in other states,” he said.

The President, the Association of Bureau De Change Operators, Aminu Gwadabe, confirmed the raid, saying however that the EFCC operatives primarily focused on street traders.

He confirmed that some registered BDC operators were affected in the raid.

“Yes, the EFCC operatives raided street traders although some of our members were also affected. The government is trying to deal with illegal practices. We believe the currency will appreciate with time,” he said.

At the parallel market, the naira closed at N1,540 per dollar.

This represents 4.05 per cent or N60/$1 depreciation compared to the N1,480 quoted on Monday on the black market.

The renewed naira depreciation after the gains in April 2024 was attributed to a shortage of dollars occasioned by the repatriation of funds by foreign portfolio investors.

Similarly, official FX trading at the Nigerian Autonomous Foreign Exchange Market witnessed a depreciation in the value of the local currency by 3.04 per cent as the dollar was quoted at N1,520 on Tuesday, weaker than N1,478 quoted on Monday.

This is the lowest in over six weeks and the first time the official rate will close above N1500/$1 since March 19, 2024.

The intra-day high also plummeted to N1,568/$1 from N1,515 recorded on Monday pointing to an even weaker exchange rate at some point during the day, according to data from FMDQ, where currencies are traded officially.

The intra-day low was N1,350 on Tuesday from N1,301 recorded on Monday.

The intra-day high represents the highest price at which the dollar traded against the naira on the official market during a single day of trading. The exchange rate typically fluctuates throughout the day

The amount of dollars supplied by willing buyers and willing sellers also decreased by 40.8 per cent or $88m to $128.76m from $217.64m on Monday.

The naira had extended its appreciation from mid-March till mid-April, before the recent decline. The naira however closed flat against the dollar in April, appreciating only by about 0.04 per cent in the official market.