₦airaland Forum

Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 1,812,108 members, 3,565,771 topics. Date: Tuesday, 30 May 2017 at 02:03 PM

Naira Drops, As BVN Paralyses Forex Market - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Naira Drops, As BVN Paralyses Forex Market (22937 Views)

Naira Drops As Demand Pressure Heightens / CBN Says Account Holders Can Access Cash As BVN Deadline Ends Today / Huge Congestion Hit Banks As BVN Deadline Nears(see Photos) (1) (2) (3) (4)

(0) (1) (2) (Reply) (Go Down)

Naira Drops, As BVN Paralyses Forex Market by cuvox(m): 7:31am On Nov 05, 2015

LAGOS — Activities at the retail segment of the official foreign exchange market were grounded, yesterday, as end users avoided bureaux de change (BDCs), to avoid submitting their Biometric Verification Number (BVN) for foreign exchange transactions.

This, however, resulted in sharp increase in demand for dollars at the black market, prompting the naira to depreciate to N230 per dollar from N225.

Recall that the Central Bank of Nigeria (CBN) made the BVN a criteria for sale and purchase of foreign exchange by banks and bureaux de change (BDCs) effective November 1.

Vanguard investigation, however, revealed that instead of foreign exchange end users submitting their BVN to BDCs as mandated by the CBN, most of them moved to the black market for their foreign exchange needs. This in turn increased demand in the market, prompting the parallel market exchange rate to rise to N230 per dollar from N225 at the close of business on Tuesday.

Confirming this development to Vanguard, Mr. Harrison Owoh, Chief Executive Officer, H.J Trust BDC said that “most of the customers were not willing to submit their BVN due to fear of what it might be used for. This has slowed down sales of forex by BDCs because we can’t sell without obtaining the BVN.”

An Abuja-based BDC manager, who spoke to
Vanguard on condition of anonymity said that the problem was severe in Abuja, with BDCs having difficulty selling the dollars purchased from the CBN, last week.

“As I am talking to you, most BDCs in Abuja may not take dollars from CBN today (yesterday) because we have not sold the ones we bought last week. The customers do not want to submit their BVN for security reasons. They are patronising the black market, that is why the rate has gone up sharply, and I can tell you, the rate might rise higher if the situation persists.”

President of Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, however, blamed the situation on lack of adequate awareness on the part of the CBN before implementing the policy. He said that while ABCON, as a partner in progress with the CBN supports the use of BVN as criterion for foreign exchange transactions, the association had, however, called the attention of the apex bank to the need to delay implementation to allow massive publicity to create awareness among the populace.

“We had predicted what is happening now, that in the absence of adequate awareness, patronage will shift to the black market, leading to depreciation of the Naira in the market”, he said.


source www.vanguardngr.com/2015/11/naira-drops-as-bvn-paralyses-forex-market/

CC lalasticlala ishilove

2 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by kelvine(m): 8:01am On Nov 05, 2015
This BVN ish causing confusion since it was introduced.

11 Likes 1 Share

Re: Naira Drops, As BVN Paralyses Forex Market by Keneking: 12:28pm On Nov 05, 2015
great

"...most of them moved to the black market for their foreign exchange needs." So many illegal businesses in Nigeria shocked

1. The next thing is to remove double zeros in Naira, so that N1 equals $1 wink
2. This approach is better than the previous government's led by Jonathan Goodluck, PhD.
3. In the past CBN was interested in injecting cash into circulation...new naira notes i.e N1,000, N500 and N100. The true picture of the economy was
relatively unknown.

16 Likes 2 Shares

Re: Naira Drops, As BVN Paralyses Forex Market by kinglord(m): 12:29pm On Nov 05, 2015
k
Re: Naira Drops, As BVN Paralyses Forex Market by gurunlocker: 12:29pm On Nov 05, 2015
no good news about the economy since may 29

naira fall, sack, fine, removal from forex, no investors.

God bless Nigeria

39 Likes 5 Shares

Re: Naira Drops, As BVN Paralyses Forex Market by Icecomrade: 12:29pm On Nov 05, 2015

The office of the CBN governor has been vacant since the Removal of Sanusi Lamido Sanusi.

Emiefule is one big mistake. Despite all his stupid stringent policies FX, naira has not gained any meaningful appreciation rather it keeps depreciating.

I miss SLS

16 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by Slonge2(m): 12:29pm On Nov 05, 2015
Nigerians should prepare for hardtimes which will be shortlived afterwhich we will experience unprecedented growth and progress.



Because surely, after the raggae comes the blues grin

23 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by Tenim47(m): 12:30pm On Nov 05, 2015
In Nigeria
Re: Naira Drops, As BVN Paralyses Forex Market by Nobody: 12:31pm On Nov 05, 2015
So BVN is now affecting the value of naira against the dollar?

2 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by prinsam30(m): 12:31pm On Nov 05, 2015
Lord have mercy, not again
Re: Naira Drops, As BVN Paralyses Forex Market by Truth234: 12:32pm On Nov 05, 2015
Everything in Nigeria lack logic, no proper planning. God!

4 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by fanysteve: 12:32pm On Nov 05, 2015
sai baba
Re: Naira Drops, As BVN Paralyses Forex Market by Fkforyou(m): 12:32pm On Nov 05, 2015
You say wetin.....?
Re: Naira Drops, As BVN Paralyses Forex Market by Nobody: 12:32pm On Nov 05, 2015
Nigerians hate good things and would rather destroy the whole nation than give in to simple instructions.

8 Likes 2 Shares

Re: Naira Drops, As BVN Paralyses Forex Market by themonk: 12:33pm On Nov 05, 2015
grin grin grin grin grin
CHANGE IS HERE, AFFECTING ALL AREAS OF OUR ECONOMY. grin grin grin grin

12 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by Pascal181: 12:33pm On Nov 05, 2015
Naira sef! Any little thing na to drop. By d way,when will buhari make 1$ equal 1#.

10 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by Misterlaby: 12:34pm On Nov 05, 2015
Oh no.. Not again
Re: Naira Drops, As BVN Paralyses Forex Market by stevealibi: 12:35pm On Nov 05, 2015
Bad news 4dem dah exchange naira 4 dollars lipsrsealed
Re: Naira Drops, As BVN Paralyses Forex Market by jomoh: 12:35pm On Nov 05, 2015
This is no problem. It is expected.

When the dollar in circulation finishes, they will have no choice than to go back to the BDCs but before then, the BDCs will have to sell at a cheap rate to attract customers.



BTW if they have no skeleton in their cupboard then why the fear.

The guilty will always run when no one is chasing him.


#FearOfTheUnknown

6 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by Vision4God: 12:35pm On Nov 05, 2015
Bvn....... bvn
Re: Naira Drops, As BVN Paralyses Forex Market by Morkavictor: 12:37pm On Nov 05, 2015
Still waiting for #1=$1

3 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by coldsummer: 12:37pm On Nov 05, 2015
We never think about the consequences of our actions.
Re: Naira Drops, As BVN Paralyses Forex Market by teemy(m): 12:37pm On Nov 05, 2015
it is short term as the lesser demand for bdc would create lesser pricing of the dollar. just a spike in the wrong direction.

2 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by SmartProf(m): 12:38pm On Nov 05, 2015
If naira is giving us issues, why cant we revert to kobo
Re: Naira Drops, As BVN Paralyses Forex Market by Kx: 12:38pm On Nov 05, 2015
Come to think of it, does it mean I ll submit my BVN to a BDC operator while buying dollars from them?


Is dat not worse than submitting to an online click away scammer?

So, how are we sure the BDC operators are not BVN bank for fraudulent purposes?

CBN managing Nigerian economy as if it's a economy of highly educated 100 peopled population.

2 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by kennyman2000(m): 12:38pm On Nov 05, 2015
Hmmmm..
Re: Naira Drops, As BVN Paralyses Forex Market by Vaxt(m): 12:38pm On Nov 05, 2015
people wey this bvn go affect.
1. Naija politians
2. Yahoo boyz(internet fraudsters)
3. Fake pastors

8 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by HusBandMateRial: 12:38pm On Nov 05, 2015
Dis gov't dun make us sofa more dan we xpectd.
Re: Naira Drops, As BVN Paralyses Forex Market by Nobody: 12:39pm On Nov 05, 2015
undecided undecided undecided If CBN no comot this BVN wahala ........

3 Likes

Re: Naira Drops, As BVN Paralyses Forex Market by Swiftboy(m): 12:40pm On Nov 05, 2015
Na wao! Wonder why those black market guys are not chase out of business.
Re: Naira Drops, As BVN Paralyses Forex Market by biosepeter1(m): 12:42pm On Nov 05, 2015
Importation Mara when men dey use see front don spoil finish.. Hmm

(0) (1) (2) (Reply)

Watch Out For Scammers At Shoprite (ikeja) / Various Ways Of Making Money Online! Hot Tutorials / Naira Faces Further Decline On Continued Dollar Scarcity

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (0) (1) (2) (3) (4) (5) (6) (7) (8) (9)

Nairaland - Copyright © 2005 - 2017 Oluwaseun Osewa. All rights reserved. See How To Advertise. 65
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.