The information shown below reflect how the naira was traded against the dollar at the Bureau de change Forex market last week.
This archive spans from March 6, 2017 to March 10, 2017.
United States Dollar Exchange Rate – USD Rate to Nigeria Naira Exchange Rate – NGN rate in bdc market:
Alhaja Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON), on Friday, advised currency hoarders and speculators against continued hoarding of forex.
Gwadabe said that the resumption in the sale of forex to BDCs and the transparency in the sale would lead to drastic reduction in gap between the official rate and the parallel market rate.
The ABCON boss advised Nigerians to avail themselves of the services of BDCs as they were sure to buy forex at controlled CBN rate.
Meanwhile, the Association of Bureau De Change Operators has said it is working with the Central Bank of Nigeria for the dollar sale to BDCs to be increased to $15,000 weekly.
The CBN, had through the International Money Transfer Organisations, resumed the sale of dollars to BDCs in January, after stopping it for almost a month due to the Yuletide holiday.
The President, ABCON, Alhaji Aminu Gwadabe, told a PUNCH Newspaper correspondent on Wednesday that the CBN had cleared 3,114 BDCs for this week’s collection of the proceeds of IMTOs.
He said, “The volatility in the market is evidenced of the scarcity at the BDCs sub-sector despite the injection of liquidity in the interbank market.
“ABCON is working with the CBN for review of volumes for the BDCs next week from the present volume of $8,000 per week to $15,000 weekly from the beginning of next week.”
He warned ABCON members not be involved in hoarding and speculation as “the apex bank is determined to smoke speculators and hawkers out of their holes”.
There are at present, 35 licensed IMTOs approved by the CBN which include Aftab Currency Exchange Limited, AWS Malta Limited, Caperemit UK Limited, Centrexcard Limited, Colony Capital Limited among others.
Others are Ria, Western Union, MoneyGram, WorldRemit RANS-Fast Remittance, UAE Exchange Center LLC, Wari limited, and Home Send S.C.R.L among others to help Nigerians in Diaspora remit dollar home and boost dollar liquidity.
The CBN said on Wednesday it would sell $100m in currency forwards on the interbank market to clear a backlog of dollar demand from business and individuals.
According to Reuters, the bank said in a note to commercial lenders that the intervention would require lenders to submit single bids to cover their demand for hard currency. The sale will be settled within 60 days.
The central bank has intervened on the forex market in the past two weeks as it attempts to narrow the spread between Nigeria’s official and black market dollar rates.
Aminu Gwadabe, confirmed this development to Vanguard, saying 3,114 BDCs collected $8,000 each from the CBN.
Gwadabe expressed optimism that the naira will further appreciate in the coming week, based on expectation of increased dollar sales to BDCs by the CBN.
He disclosed that the apex bank in furtherance of its intervention in the foreign exchange market has decided to increase weekly dollar sales to each BDCs to $15,000 from $8,000.
Since Monday February 20th 2017, when it announced new measures to boost dollar supply and forestall the declining fortunes of the naira in the parallel market, the CBN has intervened in the forex market six times as follows: Tuesday February 21st, $417 million; Thursday February 23rd, $231 million; Monday February 27th, $180 million; Friday March 3, $350 million, Monday March 6, N367 million; and on Tuesday with $100 million.
Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, said that the move by the intervention by the CBN was to fund the commercial banks with enough forex to cater for the request of customers to meet personal travelling allowance (PTA), basic travelling allowance (BTA), medicals and tuition fees.
Commending the move, market analysts observe that it will further create problems for currency speculators who are yet to recover from the sudden appreciation of the Naira.
According to the former Economic Adviser to the President and Minister, National Planning Commission, Professor Ode Ojowu, “It appears this time around, the CBN has decided to become smarter than the market manipulators, by putting on its cap of authority to look beneath the market forces”
It will be recalled that the CBN, in February 2017, changed its forex rule supply to guarantee supply to both small and the big end-users.
The policy has restored stability and bolstered market confidence which has ultimately boosted the value of the Naira.
Operators in the market have also commended the efforts of the CBN in ensuring the continuous appreciation of the naira.
This they attributed to good policy and effective communication strategy, which has witnessed increased dollar supply to the market through a deliberate policy of the apex bank.
Meanwhile, Nigeria’s external reserve rose to $30 billion, the highest in 13 months.
The external reserve has risen by $4.2 billion since the beginning of the year, and by $6.2 billion since October 19th, 2016 when it commenced its upward trend.
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