Hoarders release dollars into forex market

Bureau De Change (BDC) operators in Abuja have attributed the fall in the dollar to release of the foreign currency by hoarders who had stored it, pending the outcome of the nation’s general elections.
A cross section of the operators said that the dollar sold as low as N185 to a dollar as against N220 in the parallel market before and during the Easter holidays.
Alhaji Ibrahim Adamu, one of operators in Wuse Zone 4, Abuja, said there was suddend influx of dollar by people to sell in the market.
“I think what happened last week in the market was simply because a lot of people, who were buying dollars and hoarding them thinking that the country will go on fire, brought them out.
“We got what we usually get from the Central Bank every week; there was no difference but we had enough to meet the demands of the market.
“And you know that since there was no problem in the country after the presidential election, some of them felt that there was no need keeping the money again.
“I also want to thank Mr president for conceding to defeat and (that) made peace to reign in the country and that is what the currency is equally experiencing,’’ he said
Abudllahi Idris, another operator, also noted that elections and the long Easter break made the currency to fall as low as N185.
“Today, the first working day after Easter, we sell at N202 and buy at N190; the market will still pick up; what happened last week was a case of sudden change in the system.
“Again, now they (politicians) have stopped campaigning for election; the demand for the foreign currency has dropped too and during the long break, market closes, it always affects the market,’’ he said.
Idris said it was good to have the currency strengthened and urged the CBN to increase the amount sold to BDC to help meet the demands of buyers.
This, he said, would help reduce the amount of pressure on the currency.
The apex bank closed the Retail Dutch and Wholesale Auction system of the Foreign Exchange Market, to help strengthen the currency.
It further, at one point, sold additional 30,000 dollars to BDCs to help demand meet supply in the market.
For over one month, the Naira had traded consistently at N197 to a dollar at the inter-bank Foreign Exchange Market