Naira strengthens to N665 per dollar at ‘black market’

A few days after men of the Economic and Financial Crimes Commission raided Bureaux De Change hub in Abuja, the naira, on Tuesday, sustained its momentum at the ‘black market,’ appreciating to N665 per dollar.

The development, according to TheCable represents N30 or 4.3 per cent gain compared to the N695 to a dollar on Monday.

Currency traders known as Bureaux De Change operators at the Ikeja area of Lagos, who spoke to TheCable, quoted the buying rate of the dollar at N650 and the selling price at N665 per dollar.

According to the traders, the gains are largely influenced by increased dollar liquidity in the market.

“Dollar is plenty in the market now. Some oil companies also brought out dollars to sell,” a BDC operator said.

On the official market side, the naira appreciated by 0.03 per cent to close at N428.88 to a dollar on Monday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

Last week, operatives of the Economic and Financial Crimes Commission raided Wuse Zone 4, Federal Capital Territory, Abuja, over allegations that some Bureaux De Change operators are mopping up foreign currencies.

A source said, “The raid by EFCC in Abuja BDCs last week dampened demand.

“There were large buyers last week that many had to queue up!

“The current situation tells you that if you allow the market to work, it will find its level. We were blaming aboki fx before.”

The president of the Association of Bureaux De Change operators, Aminu Gwadabe, said the “market surveillance” was done in collaboration with the association.

“We have a cordial relationship with the security agencies and ongoing collaboration with the agencies on the exchange rate issues,” he said.

The Central Bank of Nigeria regularly intervenes in the official foreign exchange market to maintain stability.