After the Nigerian Stock Exchange closed trading on Wednesday, July 28, the naira has plunged further to 523/$ on the black market.
The slump occurred a day after the Central Bank of Nigeria stopped distributing foreign exchange to Bureau de Changes in the country. The Governor of the Central Bank of Nigeria, Godwin Emefiele, had accused the BDCs on Tuesday of abusing their privileges and sabotaging efforts to ensure naira stability in the country following the Monetary Policy Committee meeting.
In his words, “The facts abound that BDCs have become agents of people seeking illicit funding and money laundering in Nigeria, and we will pursue them all.”.
Throughout this meeting of the MPC, we extensively debated the issue at hand, and independently, each member of the committee demonstrated an accurate understanding of the issue at hand.
The management of the Central Bank, with the support of the committee, reached the following decisions that will take effect immediately. The CBN will therefore cease selling foreign exchange to BDC operators.”
On Monday, the dollar was selling for 503, but fell to 505 on Tuesday, a few hours after the CBN announced the change. According to naijabdcs.com, the official website of the BDCs, the dollar was purchased at N515 on Wednesday and sold at N523.
The CBN, however, maintained the official rate of N410.16/$1 on its website.
Before the new regulation, the CBN had been supplying each BDC $10,000 twice a week at the rate of N393