NLNG Corporate Caring banner FirstGem 3rd anniversay lecture Fidelity bank card banner Emerald Energy Institute Camano banner

Clampdown on BDCs forces forex transaction underground

By News Express on 16/11/2016

Gmail icon

Views: 1,681


Foreign currencies transaction at the Bureau de Change (BDC) segment of the foreign exchange market has been stifled since the clamp down on the operators by security agencies.

An investigation by the News Agency of Nigeria (NAN) on Tuesday in Abuja revealed that activities in the segment were conducted in secret since Monday.

This is because most of the operators do not want to sell the foreign currencies at the price fixed by the Central Bank of Nigeria.

Operatives of the Department of State Service (DSS) and Economic and Financial Crime Commission (EFCC) raided the BDCs in Lagos and Abuja on Wednesday and Thursday and arrested operators selling the currencies above stipulated rates.

NAN reports that usually the rate at the parallel market is determined demand and supply of the foreign exchange; when demand is higher than supply, the operators hike prices.

To regulate the segment, therefore, the CBN recently came out with a policy that allows each BDC to buy dollars from Travelex at N381 per dollar and sell to customers at a maximum of N400 per dollar.

Also, BDCs were asked to buy back dollars from customers at nothing more than N390 and resell at N400.

One of the parallel market operators, who pleaded anonymity, said “when customers come to buy, we don’t sell more than 200 dollars to each buyer at the stipulated price of N400 to a dollar.

“We know our customers and we have told them that this N400 price will not work, so, if they are interested in buying, they have to be ready to pay higher.

“Yesterday, I sold at N458 to a dollar. I didn’t even allow the customer to come to my shop because you cannot tell who is watching.”

On why they insist on selling above regulated price when they buy the dollar at N381 from Travelex, he said that the demand for the currency was high as against the allocation they got from the government agency.

According to him, each licensed operator gets about 15,000 dollars every week, which is not enough to meet the demand.

He explained that some of the operators had dollars that they bought at over N400 and kept for the rainy day, adding that until those funds were sold, it would be difficult for any operator to sell at N400.

Another operator, also on condition of anonymity, said that now that the cost of foreign currencies had dropped, there was an influx of people looking for dollars to buy rather than to sell.

He predicted that in December, all parties would adjust to the new regime in the market.

He said it was greedy operators, concerned about personal gains rather than country, were the ones fighting the policy and still selling at their own rates.

“I pray that the security agencies will succeed in clearing the ‘bad eggs’ among us so that sanity will return to the segment.” (NAN)

 

Source News Express

Posted 16/11/2016 05:03:56 AM

 

 

CLASSIFIED ADS

 

You may also like...
Mixed reactions greet inconclusive Kogi governorship election

PRNigeria emerges Winner of 2016 Global PR Award...

Suspected abductors of Magajin Garin Daura in police...

Buhari explodes, vows: ‘I will wrestle corruption to...

The truth which INEC is hiding from Nigerians...

PMB hits gold in Paris: 130 million Euros...

Army commences online recruitment

Mainagate: How pension syndicate defrauded Nigeria of over...

Youth converge in Ibadan to discuss strategies to...

3 police men, suspects die in motor accident...

Uburu Nursing School now affiliate of Ebonyi varsity...

Dangote trains South East block makers on proper...

 

Latest News The imperative of “people’s manifesto”, By Edwin Madunagu 30 missing INEC staff in Kogi rescued Kogi election: PDP agent rejects results Kogi election: Collation officer presents N50k bribe offered by politicians INEC limits media access to Bayelsa election collation centre APC to PDP: Don’t think of causing trouble in Kogi SDP’s Natasha Akpoti calls for cancellation of election in Kogi Central, Lokoja Two planes collide at Frankfurt airport Criticism can’t stop declaration of Rivers as Christian State, says Wike Governments that disobey court orders are irresponsible - Tsav Bayelsa/Kogi: INEC condemns violence, assures fair conclusion We will reject Hate Speech Bill in the senate – Ekwunife

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (563,131 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (452,463 views) Shameless Genevieve Nnaji exposes breasts in public (401,631 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (335,959 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (303,792 views) 10 cars more expensive than Jets (281,486 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (258,867 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (257,111 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (238,650 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (225,027 views) Lagos plane crash: Journalist releases victims’ names (201,528 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (198,180 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (109) Business & Economy (4,574) Business Verdict (86) Columnists (1,144) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (704) Features (845) Global Business Monitor (493) ICT Monitor (67) International (4,216) Interview (211) Live Commentary (30) Love Matters (176) Maggie's Blog (486) News (54,049) Opinion (1,420) Pidgin (17) Politics (11,756) Religion (1,120) Sports (2,226) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera