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Naira Watch

BDC operators blame Godwin Emefiele’s policy for weak naira, as dollar sells at N592

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The Central Bank of Nigeria (CBN) has been blamed for the declining rate of the naira against the dollar, with the foreign exchange now trading N416.00/$1 at the official market and N592/$1 at the black market.

The criticism was made by the Association of Bureaux De Change Operators of Nigeria (ABCON), which described the policy of CBN’s governor, Godwin Emefiele, to stop selling forex to them as policy summersault.

Ripples Nigeria had reported eight months ago that Emefiele accused the Bureau de change operators of aiding fraudulent transactions through the forex market, amid other allegations.

Emefiele went on to ban sales of forex to the bureau de change operators, as well as suspending the licensing of new BDC promoters – this has created scarcity of forex amid high demand, hence, the weakening naira.

READ ALSO: ‘We are still in business,’ BDC operators tell Nigerians

In a statement released on Friday by ABCON national executive council, the bureau de change operators said the national currency became weak following the stoppage of the forex sales to them.

The council stated that CBN claiming success over the current forex situation was laughable, banks are struggling to meet the demand of retail end-users, which proves that the BDCs are vital to CBN’s foreign exchange rate management.

ABCON stated that the policy worsened the forex situation, rather than improve it. The group urged its members to ignore the allegations made against them, and continue with their operations.

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