Forex

BDCs Seek FX Rate Review, Increased Allocation

Published

7 years ago

April 11, 2017

United States Dollar - Investors King Ltd

BDCs Seek FX Rate Review, Increased Allocation

The Association of Bureaux de Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to review the margin allowed to sell to customers from N2 to N10 and also increase foreign exchange (FX) allocation given to the sub-sector weekly.

The acting President, ABCON, Alhaji Aminu Gwadabe said this at an emergency meeting with Managing Directors/Chief Executive Officers of BDCs in Lagos yesterday.

However, Gwadabe and other operators at the meeting applauded the central bank for its improvement in supply, which saw BDCs receive $20,000 last week. But they argued the margin they are allowed to sell to end users at N2 was too small.

Gwadabe said: “We have told the regulators that margin is small. The margin of N2 is too small the CBN should review that margin to at least N10 per dollar.”

Furthermore speaking on the side-lines, he added: “The BDCs from the resolution have resolved to ensure that the challenge spike and volatility in the foreign exchange market. We would corporate with the central bank as we always do so that we narrow the gap between the parallel market and the also the official market.

“We are looking at a very acceptable target. There are lots of pressure from the IMF who says our naira is overvalued and also pressure from speculators, black market operators and people who carry hot money. “We are looking at a very acceptable margin between the official and the parallel rate at max it shouldn’t be more than five per cent.”

He also urged operators to abide by the rules and regulations of the association so as not to embarrass ABCON.

“We also advise the CBN to at least be accepting utilisation documents that comes from the association so that they can verify the documents our members are using to ensure that erring members are also being sanctioned from the market.

“On the issue of the BDC office where N450 million was found, we have done investigation and the thing is still under the security purview.

“But we can assure you that our investigation is on-going, we have identified the characters involve and we are going to write them to invite them. The reason we call this meeting is to say that we condemn it in entirety.

“If you are a member and you are found with N500 mill that is total abuse of the Know-Your-Customer policy. It is a total abuse of the cash transfer report, it is total abuse of the suspicious transaction report and that is the message we have told our members that they must respect those compliances.”

Also he said the association in collaboration with the Nigerian Interbank Settlement System (NIBBS) was working on a platform which would register end-users real-time to avoid infringements.

“Sometimes it is difficult to know that an end-user has used that passport. They so perfect it that even if you put stamp, they can go and clean it and represent it to you to buy dollars. So what we are doing with NIBBS is that there is a platform that they have developed whereby all the passport that buys dollars will be stored on that platform.

“So a BDC will just go into that platform and impute the passport number and it will show if that passport has been used by a particular bank or BDC.”

Furthermore, he said: “Since the CBN resumed selling dollars to BDCs, the market has gained more liquidity and naira strengthened to a large extent. The foreign exchange speculators have suffered major losses because of the role of genuine BDCs in helping the CBN to put them under sever check.

“I want to thank you for the success we have recorded even as I tell you that greater challenges lie ahead. We must confront these challenges together and with integrity and commitment to professional and regulatory guidelines.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

16 hours ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

17 hours ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.