Nigerian banks have revealed more names of customers buying cheap dollars using travel visa to resell at the black market.
The CBN in 2021 had directed Deposit Money Banks (DMBs) to set up teller points to meet legitimate FX demands.
This development came after the apex bank halted the sales of FX to Bureau De Change (BDCs) operators.
The BDCs were used to help Nigerians looking to travel abroad to access forex easily.
CBN sells to the BDCs $10,000 twice per week at the rate of N393 with a mandate to sell with a margin of N2.
Rather, from the reasons adduced by the CBN, the BDCs operators engaged in round-tripping and hoarding of FOREX thereby creating artificial scarcity to sell at higher than approved rates.
Angry, CBN stopped the sale to BDCS and asked Nigerians to go their banks to buy dollar using valid travel visa, ThisDay reports.
Because it is cheaper to buy dollars at the banks many unscrupulous Nigerians saw the huge gap as opportunity to make money.
In a circular in July 2021, CBN therefore directed banks to publicize the identities of persons who engage in such behaviour and to restrict them from obtaining currency in the future.
Exchange rate gap
As at the end of Monday, data from FMDQ securities where Naira is officially traded showed that the Naira exchanged at N441.38 to a dollar.
While at the black market(also known as street trading) it exchanges at N760/$. A huge difference of N318.62.
What this means is that if a Nigeria could buy $5,000 at 441 to a dollar for N2.2m from the bank and sell at N760 at black market.
In few mintues, the Nigerian would have N3.8 million in his hands and a profit of N1.6 million.
The list of alleged forex defaulters as sighted on the sites of 8 commercial banks show that there are a total of 1,098 names listed as forex defaulters.
CBN can’t find enough dollars
Meanwhile in another report, Foreign airlines operating in Nigeria are struggling to repatriate their dollar dividends and are stuck with naira they don’t need.
The idle cash lying in the Nigerian accounts of over 30 airlines is now a source of worry.
The trapped money rose from $147 million (N61 billion) as of August 2021 and has nearly doubled, reaching $283m (about N117.6bn).
Original report on Legit
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