The Nigerian Naira is in a tailspin at the Black Market, a day after the Central Bank stopped weekly sale of dollars to the BDCs.
According to the ngnrates.com, the Naira slumped to N525 to the US Dollar.
Operators in the market bought it at N515.
At BDCs, the rate quoted was N510-N520.
The Naira had enjoyed some stability for some weeks after it breached the N500 ceiling, trading at N502-N505.
But the announcement by the CBN governor Emefiele has jolted the market to go southwards.
While the dollar rate depreciated by 3.4 percent, the Naira also fell against other major currencies, such as UK sterling and the Euro.
It fell 1.4 percent to the Euro, as it traded between N590 and N600.
The sterling also traded between 700-710 Naira, an increase of one percent.
In the official market, the Naira was stable.
The CBN maintained its rate at N409.16-N410.16.
In a major move on Tuesday, the CBN stopped the sale of Forex to Bureaus de Change (BDC).
Mr Godwin Emefiele, the CBN Governor said the decision was informed by the unwholesome business practices of the BDCs.
He said the BDCs have continued to put enormous pressure on the Naira.
Henceforth, he said, the apex bank would sell forex to deserving Nigerians through the commercial banks.
”The BDCs were regulated to sell a maximum of 5000 dollars per day.
“But CBN observed that they have since been flouting that regulation and selling millions of dollars per day.
“The CBN also observed that the BDCs aid illicit financial flows and other financial crimes.
“The bank has thus, decided to discontinue the sale of forex to the BDCs with immediate effect.
“We shall, henceforth, channel all forex allocation through the commercial banks,” he said.
He urged the commercial banks to ensure that every deserving customer got their forex demand.
He warned that any bank found circumventing the new system would be sanctioned.
“Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex.
“Any customer that is denied should contact the CBN on 0700385526 or through the email- [email protected], ” he said.
Stakeholders have been calling on the CBN and its MPC to take urgent steps to halt unending depreciation of the Naira.