Tuesday, 29 November 2016

Naira depreciates further against major currencies as Centran Bank slashes down dollar supply to Bureaux De Change

FOREX sales in Nigeria

Sequel to the recent pronouncement by the Central Bank of Nigeria to slash down the supply of dollar to the Bureaux De Change (BDC) operators in the country, the local currency (naira) has been put under immense pressure.

Thus, the decision has further depreciated Nigeria’s currency to N473 per Dollar at the black market.

According to Financial Vanguard investigations, the apex bank made the cut by 46 percent by selling $8,000 to each BDC through Travelex Nigeria Limited against $15,000 it usually sold per week to them.

In a statement released by the Chief Executive Officer of H.J Trust BDC, Mr Harrison Owoh, it was disclosed that the reduction came as a big shock to the market.

According to Mr Owoh this was conflicting to the general expectation that the dollar sale will be improved to $20,000 per BDC.

“That is why the currency is under pressure with the rate going up.”

Also speaking, was the Chairman of the South West Zone of Association of Bureaux De Change Operators of Nigeria (ABCON), Mr Taiwo Ebenezer, who stated that the reduction in dollar sales was done to accommodate BDCs in other zones of the country.

He revealed to the Financial Vanguard that “The dollar sales have been limited to BDCs in Lagos and Abuja, but ABCON recommended to CBN to find a way to accommodate BDCs in other zones. That is what the CBN has done though the reduction in supply in Lagos and Abuja has prompted the exchange rate to go up.”

He also included that the CBN will definitely consider the impact on the rates and take a decision on whether to keep it at $8,000 per BDC across board or increase the quantity sold per BDC.


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