Naira crashes to N522/1$ as CBN stops forex sales to BDCs

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The national currency – Naira – fell marginally against the U.S dollar at the parallel market on Wednesday, after the Central Bank of Nigeria (CBN) announced the stoppage of forex supply to Bureau De Change operators.

Data recorded on abokiFX.com, a website that collates the parallel market rates in Lagos, showed that naira traded at N522.00 per $1 in the midday on Wednesday.

However, at the importer & exporter (I&E) window, it traded moderately to at N411.50 per dollar.

The CBN regretted that the parallel market had become a conduit for illicit forex flows and graft.

The apex bank further said it will also call off the processing of applications for BDC licences in the country.

The CBN governor, Mr. Godwin Emefiele, who disclosed this during a live TV broadcasting while announcing that the bank has retained its benchmark policy rate, noted that weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks.

“We are concerned that BDCs have allowed themselves to be used for graft,” Emefiele said.

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