The Economic and Financial Crimes Commission (EFCC) carried out enforcement operations against Bureau De Change (BDC) operators in the Wuse Zone 4 area of Abuja on Monday. An unspecified number of BDC traders were arrested during the raid, which occurred around noon, according to eyewitness accounts from operators in the area.
The EFCC conducted a subsequent raid in the afternoon, apprehending additional traders. Those arrested were reportedly granted bail after paying between N30,000 and N50,000, according to anonymous traders who expressed concerns about the potential repercussions for speaking publicly on the sensitive matter. The traders claimed the arrests disrupted trading activities in the market.
These enforcement actions align with ongoing efforts by the EFCC and the Central Bank of Nigeria to stabilize exchange rates and improve foreign currency liquidity in the market. Last Friday, the EFCC announced the arrest of 34 suspected currency speculators for alleged foreign exchange fraud.
Despite these measures, the naira experienced a significant depreciation against the U.S. dollar on Monday. In the parallel market, the naira closed at N1,419.11 per dollar, a substantial decline of 4.3% from the previous closing rate of N1,361 on Friday. This depreciation signals potential turbulence in the foreign exchange market in the coming week.
At the official Investors’ and Exporters’ (I&E) window, the naira traded at a loss, depreciating by N58, or 4.3%, from N1,361 on Friday to N1,419 on Monday, reflecting high demand for the U.S. dollar. The intraday high rate reached N1,451, while the intraday low was N1,060. Foreign exchange transactions worth $147.83 million were recorded on Monday.
After a consistent climb to N1,120 per dollar over 14 days ending on April 19th, the naira underwent a six-day depreciation, dropping by N310, or 21.68%, to settle at N1,430 per dollar by April 26th. This downward trend reversed at the end of the trading week, with the naira recovering by 2.14% and gaining an additional 3.70% by Monday.
In the official I&E window, the naira exhibited a similar pattern, depreciating by N169.24, or 12.64%, to close at N1,339.23 per dollar on April 26th, down from N1,169.99 per dollar on April 19th, and continuing to decline over the next seven trading days.
Currency traders in the popular Zone 4 market reported selling the dollar at N1,340, up from N1,275 over the weekend. One trader, Abubakar Taura, stated that he bought the dollar at N1,305 and sold it at N1,340, yielding a profit margin of N25.