The price of the United States Dollar may soon crash down to around N203 in the parallel market after africa’s richest man, Alhaji Aliko Dangote recently revealed that his companies better known as, The Dangote Group will soon start selling dollars to the Central bank of Nigeria.
Dangote group have offices and factories dotted all over Africa and receive the majority of its export revenue which runs into billions every week in United states dollars
Dangote, who spoke in Lagos at the Nigerian Economic Summit organised by Economist Events, an arm of The Economist of London, said, “We are looking at a situation that by 2020, we will be the one selling FX to the CBN. Our projects are mainly import substitution. We are working to be self-sufficient to grow about a million tonnes of rice over the next five years
Insider sources have revealed that the Central bank of Nigeria stopped selling dollars to Bereau the change operators because of the very low inflow of dollars from the sale of oil which used to be $3.2bn but is now around $1bn per month.
But if Dangote’s plan is to work, the Central bank of Nigeria will have the greenback in more than enough quantities through recycling the company’s revenue which will ultimately allow the CBN to recommence the weekly bidding for foreign currencies by the BDCs
According to a top source in the apex Bank, “The aim of CBN is to ensure that the divergence between the official and parallel rate does not exceed N3, so we are looking at a parallel market rate of N200/$
So far, the CBN in a bid to manage the pressure on supply has deployed over $11.7 billion to support Agricultural Sector, SMEs, manufacturers and others. This has reduced patronage of black market by end-users and has forced rent seekers to dump the greenback thereby creating a dollar-glut in the black-market.