The Nigerian naira, the country’s currency, showed signs of strength against the US dollar in the informal foreign exchange market over the weekend.
The naira’s value improved significantly, trading at 1,500 and 1,698 per USD on Saturday and Sunday, respectively, compared to Friday’s rate of N1,800.
This upward trend indicates a notable gain of N300 or 16.6 percent against the dollar at the unofficial market on Sunday.
The surge in the naira’s value occurred against the backdrop of new regulations proposed by the Central Bank of Nigeria (CBN) targeting Bureau De Change operators. These measures include prohibiting street trading and imposing a new minimum per capital share for registration.
The CBN’s efforts to enforce stricter regulations coincide with ongoing actions by the Economic and Financial Crimes Commission (EFCC) to crackdown on Bureau De Change operators in Abuja and other major cities. The aim is to stabilize the currency amidst persistent challenges.
However, some industry experts have criticized these measures. Bismarck Rewane, the Chief Executive Officer of the Financial Derivatives Company, cautioned against diverting resources towards futile pursuits. He advised against excessive focus on regulatory raids, urging a more holistic approach to address underlying economic issues.
Similarly, Peter Obi, the Presidential Candidate of the Labour Party in the 2023 general elections, questioned the effectiveness of the EFCC raids on Bureau De Change operators in addressing the naira’s depreciation.