CBN measures unsettle forex dealers in Lagos, Abuja

A survey yesterday by The Nation showed that inconsistent pricing and cautious optimism characterised the parallel market in Lagos and Abuja where traders grappled with the implications of the apex bank policies.

But despite the price disparity, there was a general consensus among traders that holders of foreign currencies were cautiously selling their holdings. The Nation learnt that the apex bank’s decision to sell $10,000 to BDC operators at N1, 251 per dollar with a 1.5 per cent spread is viewed with skepticism.Many believe that the price point may not be enough to entice a substantial downward movement in the parallel market.

Hassan Abdul, a BDC trader in Central Lagos, said the naira was trading at N1,300 per dollar around 12 noon, and sustained the rally till the close of business yesterday. He He said: “The new policies, especially the discounts given to bureau de change operators drastically reduced the rates of the dollar against naira. Many of us that bought when the dollar was high are recording major losses. But, we understand the risks involved in the business”.“The risk in this business is too high at the moment. I have to slow down until the rates settle at a more market-friendly rate,” he said.

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