Naira Surges Against Dollar as CBN Tightens Rules for BDCs

The Nigerian Naira recorded a significant appreciation against the US dollar at the parallel foreign exchange market over the weekend, Daily24 Apps reports.

The Naira traded at 1,500 and 1,698 per USD on Saturday and Sunday, respectively, up from N1,800 on Friday. This means the Naira gained N300 or 16.6 per cent against the dollar at the unofficial market.

The Naira’s rally came amid the Central Bank of Nigeria’s (CBN) new regulatory draft for Bureau De Change (BDC) operators, which aims to curb illegal activities and ensure compliance with the rules. The draft includes banning street trading of foreign currencies and increasing the minimum per capital share for BDC registration.

The CBN’s move follows the Economic and Financial Crimes Commission’s (EFCC) ongoing crackdown on BDC operators in Abuja and other major cities, as part of the efforts to stabilize the Naira and prevent money laundering.

However, the EFCC’s actions have been criticized by some prominent figures, such as the CEO of the Financial Derivatives Company, Bismarck Rewane, who advised President Bola Ahmed Tinubu to focus on more pressing issues than raiding BDCs.

The Labour Party’s Presidential Candidate for the 2023 elections, Peter Obi, also expressed his disapproval of the EFCC’s intervention in the Naira crisis.

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