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Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs - Business - Nairaland

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Naira To Trade At 386/$ As CBN Resumes Forex Sale To BDCs / Dollar Scarcity Stops Capital Repatriation By Investors / Naira Faces Further Decline On Continued Dollar Scarcity (2) (3) (4)

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Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Adesiji77: 5:53pm On Nov 10, 2016
Dollar supply is at low ebbs in Nigeria’s foreign exchange market but it may get worse after security operatives, the Department of State Security (DSS), allegedly arrested select Bureau de change operators for selling the greenback above N400/$.

Traders told BusinessDay that the DSS raided the offices of Bureau de change (BDC) dealers on Thursday, detaining some dealers and ordering others to sell dollars at a lower rate in a bid to forestall the naira’s plunge.

Aminu Gwadabe, president of the Association of De Bureau Operators of Nigeria (ABCON) said that the members of the association are ready to cooperate with government and law enforcement agencies in ensuring convergence of the different rates. He acknowledged that the problem has been that of hoarding which has been creating scarcity and depreciating the naira.
Analysts say the move to peg the rates at which Bureau de change operators sell dollars may worsen the dollar shortages in the already illiquid market and create “another black market within a black market.”

If dollar shortages intensify, it could see inflation stretch an 11-year high of 17.9 percent recorded in September. It also translates to more woes for the manufacturing sector which is in recession due to the lack of sufficient dollars to import raw materials.

“FX traders may hoard their stock consequently, making it more expensive, as trades migrate to secret venues,” said Rafiq Raji, the Managing Director & Chief Economist at consulting firm, Macro Africa Intel.
The Central Bank has denied any involvement in the arrest of the currency dealers.

“This action could further dry up dollar liquidity and feed into an already swelling demand backlog,” said Zeal Akaraiwe, the CEO at financial advisory firm, Graeme Blaque Group in an interview on CNBC.

The CBN has struggled to stop the naira’s slide against the dollar on the black market, where importers go to buy dollars, due to severe hard currency shortages in Africa’s biggest economy.
The bank has kept the official naira rate to the dollar artificially high, effectively driving hard currency dealing away from commercial lenders and towards the black market, the real benchmark.

“In the long-run, the only way the official currency rate in Nigeria can be sustainable is if oil prices rises to $70-75, which is not likely when the US president wants to boost US shale production,” said Charles Robertson, chief economist at Renaissance Capital in response to emailed questions.

At the official window on Thursday, the naira was exchanging at N315/$ at 2pm in Lagos, Bloomberg data confirmed.

Nigeria’s currency, the naira, has faced severe pressure as the country has struggled to stabilise the value of its currency. A drastic drop in oil price as well as conflict in the Niger Delta has meant that Nigeria has struggled to attract dollars which are in high demand in the developing country.

http://www.businessdayonline.com/dollar-scarcity-to-worsen-as-security-operatives-clamps-down-on-bdcs/

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Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Oxenomy: 6:18pm On Nov 10, 2016
Very soon, dollar will shoot up to 600/$ angry

Lalasticlala front page please, lets educate the masses to get prepared.

16 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Nobody: 6:20pm On Nov 10, 2016
Myndd44, kindly do something
Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by drss2(m): 6:30pm On Nov 10, 2016
soldiers used to forced down price of goods in 1984. dss used to forced up d value of d naira in 2016.
history repeating itself all ova again.

116 Likes 6 Shares

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by modath(f): 6:31pm On Nov 10, 2016
Buhari may have good intentions but his methodology is flawed.. sad

Only the FORCES of demand & supply can determine pricing, brute force will only lead to scarcity, which will only make a bad situation worse...

We know quite well saboteurs & speculators are the unseen hands driving up forex rate... cracking down on BDC operators is the wrongest move to make...

36 Likes 2 Shares

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by obailala(m): 7:35pm On Nov 10, 2016
modath:
Buhari may have good intentions but his methodology is flawed.. sad

Only the FORCES of demand & supply can determine pricing, brute force will only lead to scarcity, which will only make a bad situation worse...

We know quite well saboteurs & speculators are the unseen hands driving up forex rate... cracking down on BDC operators is the wrongest move to make...

I think this brute force is only meant for criminal BDC operators who take cheap forex from a privileged channel (Travelex/FB), then go on to sell at a price which far exceeds the price they agreed to sell when they were given the cheap bills. An agreement is an agreement, if they want to sell at parallel rates, then they shouldn't buy at privileged rates.

That is not to say the CBN's policy of forcefully controlling the rate makes any sense, but the BDCs shouldn't be criminally greedy.

24 Likes 1 Share

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by uboma(m): 7:43pm On Nov 10, 2016
the FG has lost it.
they lack sound economic policies to boost the economy.
force is now employed by the FG to make the Naira appreciate.
Alas, this show of force will only be a futile effort....

19 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by veekid(m): 8:11pm On Nov 10, 2016

Buhari vs Trump

3 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by NotNairalandi(m): 8:13pm On Nov 10, 2016
please house whats the latest news now about Chidinma okeke and the cucumber undecided

did she later ate the cucumber?

8 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by jaheymezz(m): 8:13pm On Nov 10, 2016
So make we run?? He no kuku STP boiz frm #yahoo(inq)
Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by takenadoh: 8:13pm On Nov 10, 2016
Hmmm nothing we no go see instead of enjoying Trump
Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by kings09(m): 8:14pm On Nov 10, 2016
Nawa oo. Buhari n his gra gra approach. Som1 pls wake Buhari n tel him dis is 2016 not 1984 abi which kain president be dis sef. Christmas season will soon arrive n he ll spoil d season wit his thought-less brain.

Wch kain punishment we come get in dis presidiot.

Repair d bad economy n encourage production n u ll see d naira strengthen.

Truly Buhari needs a lesson in Basic Economics. Abi iru aboki wo leleyi

13 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by DickDastardly(m): 8:14pm On Nov 10, 2016
grin
Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by hotspec(m): 8:14pm On Nov 10, 2016
But DSS why?

1 Like

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by ephi123(f): 8:15pm On Nov 10, 2016
Even the zombies are wailing in the comments above, lmao!!! I thought Buhari could do no wrong
So it's now you guys realise his methods are archaic
lipsrsealed

25 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Fantastic2m(m): 8:16pm On Nov 10, 2016
Everything na DSS lately..
Lemme be watching how this plays out

17 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by TheDEVlLHimseIf: 8:16pm On Nov 10, 2016
now everyone will agree with me that Buhari is a terrorist an economic bokoharam a vagabond and a useless nonentity kunu drinking bastard

35 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by martineverest(m): 8:17pm On Nov 10, 2016
good.,..y are nigerians heartless and too criminal-minded?

1 Like

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by kings09(m): 8:21pm On Nov 10, 2016
...the likes of madridguy, modath n dropshot will be hapi especially wen peeps r suppose to be looking forward to a lovely Christmas season
Oxenomy:
Very soon, dollar will shoot up to 600/$ angry

Lalasticlala front page please, lets educate the masses to get prepared.

3 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Gp2013(m): 8:21pm On Nov 10, 2016
what kind of country is this government projecting towards, that they can bring down the prices of things with brute force...

their economy team should work if they have one

2 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Fantastic2m(m): 8:23pm On Nov 10, 2016
they take a drastic action and it affects us strongly.

Who do u think have been used most negatively?

1 Like

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by AnodaIT(m): 8:25pm On Nov 10, 2016
[size=14pt]We are back where we started[/size]

18 Likes 1 Share

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by idolda: 8:27pm On Nov 10, 2016
Someone actually told Bubu that the forces of supply and demand determines the exchange rate but since the speech fall on Bubu ear wey get problem and it wasn't written in cartoon baba come think say na force of DSS the guy meant

Well done Bubu!

7 Likes 1 Share

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Nobody: 8:27pm On Nov 10, 2016
TheDEVlLHimseIf:
now everyone will agree with me that Buhari is a terrorist an economic bokoharam a vagabond and a useless nonentity kunu drinking bastard

He's not wrong all the time. Government sold to the BDC after accepting to sell to their customers at an agreed price. Why then are they deviating from the agreement ?

They buy from government at 380 only to sell to the public at 460. That's not business but pure wickedness.

7 Likes 3 Shares

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by steppin: 8:28pm On Nov 10, 2016
Clamping down indeed.
Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by BrutalJab: 8:29pm On Nov 10, 2016
Bullhary! See your life.
Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by kingcomet(m): 8:30pm On Nov 10, 2016
Make I buy more bitcoin incase

1 Like

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by Realdeals(m): 8:31pm On Nov 10, 2016
Government can dictate the price if they sell Forex to them. What do you call buying at N380 and selling at N460?

1 Like

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by TheDEVlLHimseIf: 8:32pm On Nov 10, 2016
Bluetooth2:


He's not wrong all the time. Government sold to the BDC after accepting to sell to their customers at an agreed price. Why then are they deviating from the agreement ?

They buy from government at 380 only to sell to the public at 460. That's not business but pure wickedness.
ok if it's true then they deserve it

1 Like

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by appini: 8:33pm On Nov 10, 2016
Blackout

2 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by lordyugo: 8:35pm On Nov 10, 2016
modath:
Buhari may have good intentions but his methodology is flawed.. sad

Only the FORCES of demand & supply can determine pricing, brute force will only lead to scarcity, which will only make a bad situation worse...

We know quite well saboteurs & speculators are the unseen hands driving up forex rate... cracking down on BDC operators is the wrongest move to make...



welcome to the light.gradually but steadily u will understand why concerned citizens criticize the deeply flawed economic policies of this regime without you thinking its tribe/region motivated.

3 Likes

Re: Dollar Scarcity To Worsen As Security Operatives Clamps Down On BDCs by oluwaahmed: 8:36pm On Nov 10, 2016
Fantastic2m:
Everything na DSS lately..
Lemme be watching how this plays out

Omo DSS dey vex. Last week dem cme arrest 1 fowl & 1 goat wey bn dey fight

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