The analysts said this in a post on the Monetary Policy Committee (MPC) report obtained by the News Agency of Nigeria (NAN) in Lagos.
They said the discontinuation of the sale of foreign exchange to the BDCs would put further pressure on the exchange rate as the commercial banks settle to adjust to the Central Bank of Nigeria (CBN) directive.
The analysts added that knee jerk reaction from market participants induced by the urge to stockpile the greenback to mitigate an expected exchange rate pressure was another factor.
“Overall, we believe the effectiveness of the modalities in disbursing the greenback to the retail segment through the commercial banks would determine how much the current rates at the parallel market will diverge from the NAFEX rates,” they said.
NAN reports that the CBN Governor, Mr Godwin Emefiele, said the BDC operators had abandoned the objectives of their establishment, which is to serve the retail end-users who needed 5,000 dollars or less.
Read More: Discontinuation of forex to BDC will affect exchange rate