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Authorities Clamp down on Black Market Exchangers

Nigeria is clamping-down on black market money dealers in its attempts to support the local currency, the naira. The government blames volatility of the unit on currency dealers in the informal black market.
DSS agents have raided offices of black market currency dealers accused of exchanging the naira at a rate higher than the agreed 400 naira to $1.

The currency was floated on the international currency markets in June after previously having been set at a fixed exchange rate with the US dollar.
However the government last week ordered intelligence agencies to crack down on currency dealers in the wake of the central bank’s apparent inability to stop the naira’s slide, reports the BBC.

The Central Bank of Nigeria endorsed the crack down.

The CBN governor, Godwin made the disclosure while addressing journalists at the end of its Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
According to Mr. Emefiele, the foreign exchange regulation in the country forbids trafficking in currency. He said that the SSS had the right to enforce the law and make sure that currency hawkers were forced out of the “illegal trade.’’

The governor, who said it was demeaning for traders to hawk currency on the streets, urged the traders to legitimise their business by applying for Bureau De Change (BDC) licence.
Officials of the SSS raided the parallel markets in Lagos, Abuja and Onitsha last week over alleged arbitrary sale of forex.
The raid, which worsened dollar scarcity at its wake, forced the naira to settle at N465 to a dollar.

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