By Dipo Olowookere
The decision of the Economic and Financial Crimes Commission (EFCC) to raid Bureaux De Change (BDC) operators across major cities of Nigeria in a bid to curb foreign exchange (FX) manipulations seems to be counterproductive.
The action followed the announcement of the Central Bank of Nigeria (CBN) to redesign the Naira notes to tackle inflation in the country and stop counterfeiting.
After the CBN’s revelation, the value of the local currency to the US Dollar plunged and to control this, the EFCC was deployed to go after BDC operators.
This has further worsened the situation as the panic caused by the raids has weakened the Nigerian currency.
At the black market on Thursday, the Naira was nearing N900/$1, selling at N880/$1 compared with the N850/$1 it was transacted on Wednesday.
Business Post gathered that those who stashed the Naira notes at home are desperate to convert their funds to Dollars and are offering outrageous amounts for this, giving forex traders the freedom to manipulate the rates.
“Some are willing to change the Naira at N1,200 or N1,500 to a Dollar,” an FX seller in Lagos informed this newspaper, noting that “this is driving prices high.”
“The problem is we do not have Dollars, and those who have want to delay selling them because they believe the price would still jump above the current rate,” another trader, who simply identified himself as Shehu, said.
Adedapo Adesanya 
Modupe Gbadeyanka