Naira Faces Depreciation Despite EFCC Raids on BDCs

The Naira witnessed a depreciation against the US Dollar on Thursday, even as the Economic and Financial Crimes Commission (EFCC) conducted raids on Bureau De Change (BDC) operators. According to data from FMDQ, the Naira declined to N1571.31 per US dollar, marking a 28.73 or 1.6 per cent depreciation compared to Wednesday’s closing rate of N1,542.58.

This decline is attributed to the intensified clampdown on BDCs by EFCC operatives, resulting in an increased demand for foreign exchange (FX). The trend emerged despite two consecutive days of Naira appreciation against the USD at the official forex market.

Simultaneously, in the parallel market, the Naira appreciated to an average of N1,680.00 per USD on Thursday, showing a notable shift from N1,860 per US dollar on Wednesday.

Over the past few weeks, the Central Bank of Nigeria (CBN) has implemented various policies to address the persistent fluctuations of the Naira in the FX market. The most recent measures involve guidelines aimed at discontinuing the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash.