Naira to dollar exchange rate: Bureau De Change operators secret exposed

A consultant, Boniface Chizea, has revealed how Bureau De Change operators are frustrating the growth of the Naira against foreign currencies.

Naira recorded an appreciable rise against the dollar in the parallel market, standing at 730/$ from 900/$ a week ago.

Chizea told Daily Post on Friday while reacting to the latest Naira rise against the Dollar, that the operation of some BDC is a significant blow to the country’s local currency.

He disclosed that the Nation’s economy benefits nothing from the activities of BDC operators.

He said the noticeable growth in the Naira after the clampdown on some unscrupulous BDC operators has shown that the government’s action is yielding results and is suitable for the sanity of the foreign exchange market.

He said that the Central Bank of Nigeria, CBN, should avoid fluctuations in the foreign exchange rates to sustain Naira growth.

“The news about the appreciation of the rate of exchange at the parallel market is the best news for the economy as it should impact on the inflationary spiral in the country, amongst other positive developments. The rates are reported to have fallen to 700 Naira plus from a high of almost 900! I also feel vindicated because I had made the recommendation that if it was at all possible that some dollars should be injected into the parallel market to checkmate the free fall in the exchange rate which the Naira was going through. And this is in writing and could be corroborated.

“I made this recommendation mindful of the fact that the heightened demand pressure was due to a sudden and intensified flight to the dollar as a store of value by primarily those who are holding piles of Naira outside the banking system illegitimately. There is, therefore, the expectation that demand pressure will stabilize post the January 31, 2023, deadline for old currency notes in the specified denominations to cease to be legal tender currency.