Skip to main content

CBN Meets BDCs As Naira Depreciates To N466/$

THE Naira yesterday depreciated further to N466 per dollar in the parallel market prompting the Central Bank of Nigeria (CBN) to meet with Bureaux De Change (BDC) operators and Travelex to evolve measures to halt the persistent slide of the currency.

Vanguard investigations revealed that the parallel market exchange rate rose yesterday from N460 per dollar on Wednesday to close at N466 per dollar. Hence the naira depreciated by N11 against the dollar this week, up from N455 per dollar at the close of business last week.

BDC sources told Vanguard that the persistent depreciation of the naira ths week was due to a host of factors chief of which was the supply of dollars from Travelex, which has been limited to BDCs in Lagos. Also, the weekly dollar sale of $15,000 by Travelex to each BDC was delayed yesterday aggravating the naira depreciation.

Confirming this development to Vanguard, Chief Executive Officer, H.J Trust BDC said, “The dollar went up today (yesterday) because Travelex is yet to sell to BDCs. But we believe they would do so before the end of today. If that happens, the exchange rate will drop by tomorrow morning (today).

Meanwhile, Vanguard gathered that the CBN on Wednesday met with Travelex and Association of Bureaux De Change Operators of Nigeria (ABCON), to evolve measures to enhance supply of dollars and halt the depreciation of the naira.

Confirming this development to Vanguard, ABCON President, Alhaji Aminu Gwadabe said, “Yes we met with the CBN and Travelex to identify the problem and proffer solutions. Much of the problem is because BDCs outside Lagos are yet to be incorporated into the weekly dollar sale by Travelex. As a result there is increased demand pressure on the market in Lagos, causing the rate to go up. Also remember that we are in the ember months, and preparation for the yuletide season is increasing demand for dollars.

To address this, the CBN has directed that First Bank should begin to sell to BDCs outside Lagos. It also directed Travelex to open up more locations across the country to serve BDCs outside Lagos. Also the number of BDCs accessing the weekly dollar sale in Lagos has been increased from 1000 to 1,400. So the situation in the market now is temporary. We expect the rates to drop as soon as these measures are implemented”.

Analysts at the Financial Derivatives Company (FDC) however differed, insisting that pressure on the naira will persist in the parallel market. In the Company’s Bi Monthly Business and Economic Update issued on Wednesday, they stated, “Travelex sale to BDCs had a temporary relieve on the parallel market but has been insufficient to meet the huge demand gap.

Travelex supply in the market is conditioned strictly to that travelling outside the country. Hence, it does little to compensate for other segments of the economy that desire forex for other purposes. Hence pressure on the naira is to persist in the market”.
http://www.vanguardngr.com/2016/10/cbn-meets-bdcs-naira-depreciates-n466/
Post a Comment

Popular posts from this blog

U.S. Military Helicopter Crashes In Iraq On Thursday, Killing 7 People On Board

One of the U.S. military helicopter in Iraq has crashed after hitting a power line in Iraq's western Anbar province, killing all seven personnel aboard.

According to a statement from Pentagon this morning, the officials said the crash of the HH-60 Pave Hawk helicopter occurred Thursday afternoon near the town of Qaim.

"All personnel aboard were killed in the crash," Brig. Gen. Jonathan P. Braga, director of operations, Combined Joint Task Force - Operation Inherent Resolve, said in a statement.

"This tragedy reminds us of the risks our men and women face every day in service of our nations," he said. "We are thinking of the loved ones of these service members today."

The statement further said;

Badoo Srine Discovered,Alaka Abayomi Of Alaka Petroleum Apprehended(Video)

The Nigerian police SARS, IRT and RRS, has arrested a popular independent oil marketer of Alaka petroleum Alhaji Abayomi Alaka . Following investigations of the recent killing of a family of five over the weekend , kudos to the gallant men of the Nigerian police

Wife Of Donald Trump Junior Files For Divorce

(Reuters) - The wife of Donald Trump Jr., the eldest son of U.S. President Donald Trump, has filed for divorce in New York, according to court records.

Vanessa Trump, a former model and actress, and Trump Jr. said in a joint statement on Thursday: "After 12 years of marriage, we have decided to go our separate ways."

The statement was provided by the Trump Organization, the president's business empire, which his son helps manage.


Further details were not immediately available on the uncontested divorce filing by Vanessa Trump in a New York state court. She and Trump Jr. have "enormous respect" for each other, according to the joint statement, which also asked for privacy.