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

This BVN ish causing confusion since it was introduced.

great

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

1. The next thing is to remove double zeros in Naira, so that N1 equals $1
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.

k

no good news about the economy since may 29

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

God bless Nigeria

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

In Nigeria

So BVN is now affecting the value of naira against the dollar?

Lord have mercy, not again

Everything in Nigeria lack logic, no proper planning. God!

sai baba

You say wetin.....?

Nigerians hate good things and would rather destroy the whole nation than give in to simple instructions.

CHANGE IS HERE, AFFECTING ALL AREAS OF OUR ECONOMY.

Naira sef! Any little thing na to drop. By d way,when will buhari make 1$ equal 1#.

Oh no.. Not again

Bad news 4dem dah exchange naira 4 dollars

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

Bvn....... bvn

Still waiting for #1=$1

We never think about the consequences of our actions.

it is short term as the lesser demand for bdc would create lesser pricing of the dollar. just a spike in the wrong direction.

If naira is giving us issues, why cant we revert to kobo

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.

Hmmmm..

Dis gov't dun make us sofa more dan we xpectd.

If CBN no comot this BVN wahala ........

Na wao! Wonder why those black market guys are not chase out of business.

Importation Mara when men dey use see front don spoil finish.. Hmm