Security agents raid forex black market operators to stop slide of naira
Security agents raided the offices of black market currency dealers on Thursday, detaining some and ordering others to sell dollars at a lower rate in a bid to break the fall of the currency, Reuters reported.
“The police and state security service officials are raiding black marketers in Lagos and Abuja to compel an appreciation of the naira,” Mallam Adamu, a bureau de change operator, told Reuters.
Another trader said security agents visiting bureau de change operators told dealers not to sell dollars for more than 395 naira.
“We’ve stopped buying dollars from just anybody that walks into our shop due to the harassment from security agents and a directive from our association,” said a dealer, asking not to be named.
The currency is changing hands at 460 naira per dollar on the black market, far weaker than the official rate of 305.5. The naira had regained some ground this week after dropping earlier from 470, but dealers said hard currency supplies remain limited.
Aminu Gwadabe, head of the Bureau de Change association, said his licensed dealers had agreed with the central bank and security agencies to enforce a rate of 390 to 400 to the dollar.
“The issue of naira depreciation has been narrowed to the activities of speculators and we have decided, with the cooperation of both the central bank and the security agents, to enforce a new rule on pricing,” he said.
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3 Comments
Buhari does not know any other way to govern. Everything must be done by force and by fire. The illiterate does not yet know that the exchange rate of any currency is determined by economic forces, not by brute force. In 1984/85 when Nigeria was at her lowest ebb, the Mullah ordered soldiers to forcefully open every warehouse, remove the goods therein and sell at ‘enforced’ prices. So much so for the ‘saviour’ of Nigeria. Time will tell how far he will go to artificially determine the value of the naira vis-a vis the dollar. Sai Baba!
Jesus Christ, this fools clearly have no clue how to govern or how an economy works. The use of force to try to control price is just a waste time and money. This would further drive the supply of dollar lower and decrease the value of naira. This is the worst most stupid that can be done. The central bank needs to allow market forces to determine the price with some help from them. The value of naira would increase when we reduce our demand for dollars, increase our economical activities, reduce our importation of everything, and eventually increase the supply of dollars. Nigeria government is truly useless.
Price-fixing never works in any decent economy! Laissez-faire economists would always advocate for the market forces of supply & demand to determine fair value of any commodity. Limited supply means higher prices to choke off demand. That’s Economics 101. The government can’t raid black market dealers when their business is legit. Why we have a three-rate Forex structure defies comprehension.
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