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Naira Crashes Further Against Dollar At Parallel Market - Here Is The New Rate

Despite a warning from the Central Bank of Nigeria (CBN) about the punishment of forex sculptors and hoarders, speculators continued to squeeze dollars as a free fall in naira continued.

Tuesday checks in the parallel market showed the exchange of Naira at N485/$1.

The Naira traded even $1 for N410 in I&E Forex.

The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, who spoke about the growth, blamed forex speculators and black-market forex dealers for their naira woes.

He said from now on that approved BDCs will engage actively in speculators.

"CBN operators will not stand by and watch the monetary business derailed by monetary speculators and black market traders not accountable to any authority, and that CBN operators will not be responsible for any currency business" he told DailyTrust."

Speculators that caused artificial shortage of the dollar within the market also attributed the naira depreciation on the parallel market.

The continued depreciation of the naira was also due to an increased supply shortage, demand pressure and rationing in the forex market.

BDCs will continue to enable the CBN to protect the naira by adhering to Anti-Money Laundering and Terrorist Financing (AML/CFT) and endorsing the CBN's policies on stabilization of currency exchanges, according to Gwadabe.

He said that each BDC operator required complete information and knowledge as to how to increase the Suspicious Transaction Reports (STR) and Currency Transaction Reports (CTRs) and send them to the regulatory agencies, understand the requirement that NFIU goAML - Anti-Money Laundering Portal should be registered and submitted reports and proper documents for all forex sellers.

All BDCs should submit their reports to CBN, the Economic and Financial Crimes Commission and Know Your Costumers as required weekly. He told them that they would be required to submit their reports (KYC).

"Be alert in your activities so CBN examiners will still be able to search you on the spot."

The CBN, which has already been aligned with global best practices, should name all BDCs compliance officers and data protection officials.

"Also do not send back late to sell dollars above the allowed rate for CBN," he advised.

Gwadabe said that the operators would set a good example in their operating arrangements and cause forex buyers to lose confidence to black market dealers by following established laws.

Godwin Emefiele, CBN Governor, recently claimed that the policy of 'Naira 4 Dollars' was intended to improve the transparency of reimbursement inflows and to reduce the rental activities.

He was optimistic that the new policy would promote the development of products and investment vehicles for Nigerians to invest in the diaspora. It would encourage banks and financial institution.

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Aminu Gwadabe Association of Bureaux De Change Operators BDCs CBN Central Bank of Nigeria

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