Following the struggle of the Foreign Exchange (Forex) market as occasioned by the outbreak of the COVID-19 pandemic, which led to low circulation and causing the exchange rate to rise as high as $1 to N500 in the black market in recent weeks, there is finally light at the end of the tunnel as a result of the opening of Bureau De Changes (BDCs) and the resumption of International flights.
The resumption of Forex sales to the Bureau De Change operators by the Central Bank of Nigeria on Monday (today) will strengthen the exchange rate of the Naira to the dollar, according to the operators.
In a circular, the Central Bank of Nigeria (CBN) had announced plans to resume sale of foreign exchange to BDCs today as part of effort to enhance accessibility to foreign exchange.
The Naira, which traded on the parallel market at N420 to a Dollar on Friday, sold for N480 a week earlier.
The President, Association of Bureau De Change Operators in Nigeria (ABCON), Alh. Dr. Aminu Gwadabe, expressed support for the CBN action on forex sale, saying:
The anticipated intervention in the BDC sector will ensure stability in the foreign exchange market.
According to him, speculators in the forex market had been dealt a huge blow with the sharp drop in the exchange rate, which he said would continue a downward trend with the resumption of international flights.
The Director, Corporate Communications Department, CBN, assured that those requiring foreign exchange for purposes of travel, educational fees and other invisibles could obtain such over the counter from their respective banks.