Naira Makes “Miraculous” Recovery as DSS, EFCC Raid BDCs

The Naira on Friday strengthened against the dollar in all segments of the foreign exchange markets, as officials of the Department of State Services (DSS) and Economic and Financial Crimes Commission (EFCC) continued to raid offices of some bureaux de change (BDC) in Lagos, and arrested operators selling above the stipulated exchange rate of N385 per dollar.

At the interbank market, the currency gained N1.45 to close at N304.75 from N306.50 recorded on Thursday.

At the Bureau De Change window, naira exchanged at N385/400 to a dollar, Central Bank of Nigeria controlled rate, while the Pound Sterling and the Euro closed at N555 and N500, respectively.

The naira gained N5 at the parallel market to exchange at N455, from N460 recorded on Thursday, while the Pound Sterling and the Euro closed at N555 and N505, respectively.

Traders at the market said that activities were low as Thursday’s raid on the market by the operatives of the Department of State Service and Economic and Financial Crimes Commission had instilled suspicion among them.

An official of the DSS said that the secret service agency will continue to monitor the market and that any dealer who trade at an exchange rate weaker than 400 naira per dollar face arrest and prosecution.

The foreign exchange market has been hit by waves of speculations and sharp practices.

Banks, BDCs, importers and individuals engage in round-tripping or arbitrage (buying funds from the Central Bank of Nigeria’s official market at low rate and resell in the parallel market at higher rates).