The dollar fluctuated against the N445 on the parallel market on Monday due to scarcity and dwindling liquidity in the foreign exchange market.
The extension of the ban on flights in the country by the federal government as part of efforts to curb the spread of coronavirus further affected access to forex by bureau de Change operators.
Aminu Gwadabe, President, Association of Bureax De Change Operators of Nigeria, said, “The expansion of the airport closure and the sale of forex to the BDCs that are pending when flights resume have negatively affected the naira from N425 / $ to $ 445 / $ in the parallel market.
However, the CBN governor’s assurances to foreign investors on easy exit have helped flatten the curve to N445 / $ with no sign of further depreciation at the close of business today.
“The persistent dollar scarcity with dwindling liquidity in the market is one of the major unintended consequences of closing the BDCs window.”
However, deposit banks had started currency sales to customers who wanted to pay school fees, and SMEs made significant imports needed to restore economic activity across the country.
This followed the commencement of currency sales by the Central Bank of Nigeria to all commercial banks for sale to parents and SMEs as part of efforts to gradually ease the impact of the COVID-19 closure.
The CBN said it had resumed supply of over $ 100m. Pr. Week for school fees and SMEs.
Unity Bank Plc said in a statement that it had received delivery of currency from CBN to adequately meet qualified customer requirements.
ABCON stated that it was important for CBN to resume the sale of forex to the BDCs to defend the value of the naira and infant industry.