BVN: Naira drops again as customers patronise black market

Activities at the retail segment of the official foreign exchange market came to a halt yesterday, as end users stayed clear of bureaux de change (BDCs), to avoid submitting their Biometric Verification Number (BVN) for foreign exchange transactions.



This, however, resulted in sharp increase in demand for dollars at the black market, prompting the naira to depreciate to N230 per dollar from N225.
Recall that the Central Bank of Nigeria (CBN) made the BVN a criteria for sale and purchase of foreign exchange by banks and bureaux de change (BDCs) effective November 1.

Confirming this development, Mr. Harrison Owoh, Chief Executive Officer, H.J Trust BDC said that:

"Most of the customers were not willing to submit their BVN due to fear of what it might be used for. This has slowed down sales of forex by BDCs because we can’t sell without obtaining the BVN".

An Abuja-based BDC manager said that the problem was severe in Abuja, with BDCs having difficulty selling the dollars.

"Most BDCs in Abuja may not take dollars from CBN today (yesterday) because we have not sold the ones we bought last week. The customers do not want to submit their BVN for security reasons. They are patronising the black market, that is why the rate has gone up sharply, and I can tell you, the rate might rise higher if the situation persists".

He said.