Forex Crisis DSS raids parallel market operators, arrests dealers selling over N400/Dollar

On Wednesday, November 10, 2016, DSS operatives, posing as customers, raided the offices of some BDC operators in Lagos.

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Nigerian naira notes are seen in this picture illustration March 15, 2016. REUTERS/Afolabi Sotunde play Nigerian naira notes are seen in this picture illustration March 15, 2016. REUTERS/Afolabi Sotunde
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The fear of sanctions and arrest by the Central Bank of Nigeria (CBN) are forcing Bureau De Change (BDC) operators to fix the prices of currencies such as the Dollar, Pound and Euros.

According to a Punch Online report, the Naira has been changing for N400 to a Dollar for the past three days on the parallel  market.

Nigeria's central bank governor Godwin Emefiele speaks during the monthly Monetary Policy Committee meeting in Abuja, Nigeria January 26, 2016. REUTERS/Afolabi Sotunde/File Photo play Nigeria's central bank governor Godwin Emefiele speaks during the monthly Monetary Policy Committee meeting in Abuja, Nigeria January 26, 2016. REUTERS/Afolabi Sotunde/File Photo

 

The report quotes Alhaji Yusuf Rabiu, a licensed BDC operator, saying that the recent raid of BDC establishments by the Economic and Financial Crimes Commission (EFCC)have forced the operators to reach such a compromise.

BDC operators have also agreed that the Pound Sterling will be sold for N540 each and the Euro for N500 each.

Under normal circumstances, the forex rate at the BDC level is usually determined by demand and supply. When demand is higher than supply, the prices of these currencies generally go up.

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Punch Online reports that the CBN recently issued a policy that let BDC operators purchase dollars from Travelex at N381/Dollar and sell to customers at no more than N400/Dollar.

On Wednesday, November 10, 2016, DSS operatives, posing as customers, raided the offices of some BDC operators in Lagos and arrested operators selling above the CBN-stipulated rate.

Department of State Service (DSS) operative. play

Department of State Service (DSS) operative.

(Channels TV)

 

On Monday, EFCC called so many licensed BDC operators. The issue is that they feel we are unnecessarily hiking the rates. But it’s not our fault.

Right now, their focus is on our business; they have been calling us one by one and we don’t want a problem. That is why we have agreed to have a fixed rate for now.

After the raid in Lagos, we the Abuja operators met and agreed on a fixed rate so that such will not happen to our members," said a BDC operator, who requested to be kept anonymous.

Following the raid, several BDC operators across the Lagos and Abuja metropolis temporarily closed down their businesses.

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