Naira Falls Again as FX Applicants Complain Over Banks’ Processing

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Naira has witnessed significant plunge in the last 72 hours. The local currency plummeted to a record N543/$ earlier on Friday.

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President of the Association of Bureau de Change of Nigeria (ABCON), Dr. Aminu Gwadabe, attributed the fresh crisis to an accessibility challenge, adding that the majority of his colleagues have been thrown out of business due to lack of liquidity.

Gwadabe also confirmed that speculators have taken over the market, cashing in on the absence of a “control mechanism in the open market.”

He disclosed that the association was still in talks with the Central Bank of Nigeria (CBN) on the possibility of backing down on its earlier stoppage of the weekly sale of FX to registered traders.

Last month, the apex bank had stopped funding for bureau de change (BDC) operators, citing anti-market activities and money laundry as major reasons. It, thus, entrusted personal/business travel allowance (P/BTA) FX sale to deposit money banks (DMBs).

Some BDC operators allege that banks are witty and cunny as they deliberately give conditions that make the black market inevitable, which they in turn take advantage of.

Some banks have also devised means to circumvent the rules and rip off those applying for FOREX through brokering. For instance, findings have suggested that some bank officials work closely with currency traders to whom they refer applicants they claim to have fallen short of the criteria. 

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