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Africa-Press – Nigeria. It is no longer a story that Nigerian currency – is experiencing serious depreciation against foreign Currencies in the foreign exchange Market Particularly US Dollar which remain to be the most needed in the Forex market.
The exchange rate of Naira to dollar have continue to skyrocket in the parallels Market since the Central Bank of Nigeria’s announcement of it’s intention to redesign naira notes last Month.
The major source of Nigerian foreign earning is crude oil which the Federal Government said the activities of Pipe line vandals has drastically affected the crude production and sell, hence seriously affect the Country’s foreign earning.
The Scarcity of Dollar in the Foreign Exchange Market and why the blame is always on the parallel market .
who is to blame for the scarcity of dollar?
Commercial Banks that are authorised to issue the dollar by the CBN for business ,health and educational purpose or Bureau de Change that were ban from receiving foreign currencies from the Apex Bank since 2021 as they were accused of aiding illicit financial dealings.
Bureau de change other wise known as parallel Market struggle to get their foreign Currencies from individuals in order to maintain business are facing different threat by Economic and financial Crimes Commission (EFCC) and the Department of State Security ( DSS).EFCC arrest 82 Foreign Exchange Operators in Abuja, Lagos and Kano Wednesday last Week
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According to the Paper EFCC detectives stormed several forex trading hubs in Abuja, ransacking their vaults for stash of dollars and naira.
The operatives later arrested no fewer than 25 legal and illegal forex dealers in addition to the 40 arrested on Tuesday during a raid of the Zone 4 Wuse offices of the Association of Bureau de Change Operators, bringing the number of arrests in the Federal Capital Territory to 65.
During the operation, the EFCC personnel were said to have seized the phones of those that were arrested.
The anti-graft agency also nabbed about 14 forex dealers in Lagos on Wednesday while eight others were picked up at the famous Bureau de Change market located at Wapa in Kano metropolis.
Baban gida Lamido is a business analyst and former Deputy President Kano Chamber of Commerce Mines and Agriculture .
He said CBN is behind the scarcity of dollar as the amount it provides through Commercial Banks is not enough to cater for the need on the ground.
The analyst added that the issue is multi dimensional as bureau de change have their merit and demerit but they should be provide with foreign currencies by CBN as it issued Commercial Banks but with strick regulations.Lamido said if the apex Bank can regulate Banks why not bureau de change.
He also advise Government to establish Market and Parks Management Board to spear head the affairs of Business sectors so that this board can assist in identifying genuine businesses especially importers that need foreign currencies so that CBN also can consider them as individuals while requesting dollar and other foreign currencies.
Baban gida Lamido as business man with years of experience in different sectors urged Central Bank of Nigeria and Government at various level to consider the flight of manufactures, Miners ,farmers ,and entire businesses while taking decision on any matter that affect the economy.
Lamido added that the hard ship experienced by Nigerians is as a result of in relevant economic policies enacted by those in Government
What impact the EFCC arrest make on Foreign Exchange Rate
Even with arrest of some Foreign exchange operators in the Nigeria’s Capital Abuja and two Major Commercial cities Lagos and Kano ,the exchange rate of naira to dollar continue to increase because of high demand.
Africa Press observe that foreign currency buyers in Kano shift from buying US Dollar to Saudi Riyal do to the shortage of dollar in the market.
One the buyers who pleaded for anonymity told this medium that , they only buy foreign currency in an effort to avoid the rampant inflation and the issue of naira redesigned as they can not abandone their businesses to go to banks as Nigerian banks are always full of queues on normal days talk less of when there is dead line to deposit all the old notes.
” I operate four businesses in different Kano Markets , I import goods from China and Turkey I couldn’t remember when last I go to bank ,what ever amount we got from these business ,we just call bureau de change people convert the money in to dollar then we send them to the countries we purchase good from” he said.
A bureau de change operator in Kano Popular Foreign Exchange Market Wapa who also pleaded anonymity says he was part of those arrested by EFCC in Kano during the recent raid .
He said if their operation stops for a day the scarcity of dollar will increase with almost 75 Percent as Commercial Banks are in short of the dollar and buyers prefer to buy from bureau de change companies as banks are no longer customer friendly like before.
The Man who said he spent over fourth years in Foreign exchange business say’s the present Central Bank Governor ‘s decision of not issuing foreign currency to Bureau de change companies is unhealthy to Nigeria’s economy as he urged President Buhari to reconsider the decision.
He added that if government chase them out of that business ,it will create millions of unemployment in addition to what is on the ground, so he advised government to pay more attention on regulating the Bureau de change Companies by upgrading them the way it upgrade Banks.
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