The Nigerian Naira has dropped N10 to trade at N465/$1 on Wednesday, November 16, as against the N455/$1 it was yesterday in the black market.
The depreciation comes after operatives of the Department of State Service (DSS) and Economic and Financial Crimes Commission (EFCC) raided offices of Bureau de change (BDCs) last week.
It was gathered that the DSS raided offices of BDCs in some part of Lagos and Abuja, arresting operators that sell above the exchange rate stipulated by the Central Bank of Nigeria (CBN).
The clampdown followed a meeting between the Central Bank of Nigeria (CBN), the SSS and leadership of the BDC association aimed at finding solutions to the poor performance of the national currency against other international currencies, particularly the dollar in the money market.
But according to the local currency traders, the move by DSS has instilled fear among BDCs.
Experts have also predicted that the raid will lead to increased volatility of exchange rate and further fragmentation of the parallel market, a prediction that seems to be occurring.
An economist had said: “We expect further appreciation of the currency in the parallel market over the short-term following the raid, but acknowledge that it may not be sustained for a prolonged period of time.”
However, the Naira stayed firm against the the Pound Sterling and Euro to trade at N560 and N495 respectively.
Meanwhile, you can check out LatestNigeriaNews.com.ng Bureau De Change ‘market’ here for the best rates on foreign exchange.