Saturday, November 12

Naira strengthens against dollar after DSS clampdown on BDCs

Naira strengthens against dollar after DSS clampdown on BDCs

– After a few days clampdown on the operators of Bureau de Change in Abuja and Lagos, the naira has gained strength against the US dollar

– The arrest of some BDC operators by the Department of State Services (DSS) also resulted to a meeting between the Central Bank of Nigeria and the two other parties involved

– The parties resolved to find solutions to the poor performance of the naira against other currencies in the money market

The Nigerian currency on Friday, November 11, strengthened against the United States dollar after operatives of the Department of State Services (DSS) clamped down of Bureau de Change operators.

Since Wednesday, November 9, DSS operatives in major cities in Nigeria – Lagos and Abuja – had gone on a rampage against the money changers.

The secret police ordered operators of the Bureau de Change to buy dollars at N390 and sell at N400 to their customers.

The action, the Central Bank of Nigeria said was in line to the recouping the value of the naira in the parallel market.

After the activities of the secret police, a meeting between the leadership of the three parties involved was held in Abuja.

The meeting was aimed at finding solutions to the poor performance of the naira against other currencies in the money market.

At the interbank market, the currency gained N1.45 to its exchange value to the dollar, closing at about N304.75, from N306.50 recorded on Thursday, Premium times reports.

It was also gathered that at the parallel market, the naira gained N5.

It also exchanged at about N455 from N460 on Thursday while the pound sterling and the Euro closed N555 and 505 respectively.

Meanwhile, the apex bank has made provision for all BDC operators to buy and sell dollars through Travelex at N381 and N385 respectively.

Also on Friday, November 11, most black market traders were selling to their customers at between N385 and N400 to the dollar, as agreed at last weekend’s meeting, N555 to the Pound Sterling and N500 to the Euro.

However, the CBN guidelines stipulate that BDCs must not sell foreign exchange to end-users above two per cent margin of the buying rate.

It is this directive by the apex bank that mandated the use of force by the DSS.

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