Francis Ogwo
The rate of the dollar to the naira recorded N452 at the parallel market on Wednesday over speculations by operators in the market and the impact of the country’s rising foreign debt.
The Central Bank of Nigeria had resumed foreign exchange sales around the end of April to commercial banks, which was to be made accessible to customers towards meeting domestic needs, and businesses making essential imports in the process of turning around the fortunes of Nigeria’s comatose economy.
There had been a whole month suspension of forex sales in the wake of the COVID-19 outbreak.
According to the President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, the continued ban placed on flights in the country by the Federal Government had its toll on access to forex by Bureau de Change operators, but the regulator had assured them that forex would be extended to them when flights resume.
Alhaji Aminu Gwadabe said the suspension had no doubt caused speculation, volatility and spikes in the market.
In his words, “Speculators are taking advantage of the fact that the major source of foreign currency liquidity is now foreign debt, not petrodollars.
“The CBN and the presidential task force need to extend essential services to BDCs to checkmate the unfortunate behaviours of speculators to save our local currency.
“Our economy is mostly dependent on imported textiles, refine oil, food, and medicals, among others.
“There is also a need to look beyond traditional sources of foreign inflows of currency liquidity to more germane sources like diaspora remittances and backward integration.”
He added that “The parallel market rate has jumped to N452/$ today (Wednesday) and the trajectory, going forward, is worrisome and disturbing except the BDCs are returned to essential services.”
Reports say the Deposit Money Banks, have, however, commenced forex sales to customers for school fees, while SMEs making essential imports needed to revamp economic activities were allowed to bid for forex.
