The Central Bank of Nigeria’s decision to resume the supply of dollars to Bureau de Change operators is raising the risk unscrupulous traders profiting from the country’s multiple exchange rates, according to Rand Merchant Bank.
The regulator said on Thursday that it will sell dollars from September 7 to foreignexchange agents for the first time since March, when the country closed its air borders to stop the spread of coronavirus pandemic.
Operators will pay 384 naira per dollar, and sell at 386, compared with the parallel-market rate above 470. That means traders could obtain dollars at the lower rate from legal money changers, and sell them at a much higher rate on the black market, a process known as round-tripping.
Continue read: https://www.newtelegraphng.com/dollar-sales-to-bdcs-raises-risk-of-profiteering-in-fx-trade-experts/