- Naira Appreciates as CBN Resumes Dollar Sales to BDCs
The Nigerian Naira appreciated by N2 on the parallel market on Wednesday after the Central Bank of Nigeria announced it would resume the sales of forex to bureau de change operators across the country.
The local currency improved from N460 it traded to a dollar on Friday to N458 today as traders seem optimistic about dollar liquidity.
It should be recalled that the apex bank had suspended the sales of dollars to the BDCs on March 26 due to the coronavirus pandemic ravaging the world.
However, the central bank has now said it would resume sales of forex to BDC for onward sales to businesses and Nigerians looking to purchase for approved items.
On the Investors & Exporters FX Window published by the FMDQ Group, the Naira traded flat at N385.94 per US dollar, the same rate it traded on Friday.
Aminu Gwadabe, President, Association of Bureaux De Operators of Nigeria (ABCON), said it has issued reopening guidelines to all its members nationwide.
He stated that “We are also updating all regulatory obligations during the lockdown, fumigation of members offices/markets, distribution of the second phase of face mask nationwide to our members. There is also the provision of wash hand basins, sanitisers at our distributions centres while members are to explore school fees, mortgage, subscription payments as one of their allowable scopes during post-COVID-19.”
Meanwhile, the governor of the Central Bank of Nigeria has warned Nigerians and foreign investors patronising black market to stop, saying they are helping to heat up the already tensed forex market.
He said “I know some of you are involved, stop now. By going to the parallel market, you are helping to overheat that market. Not only that, but you will also lose money because you would have bought it at a price that is not realistic. I can tell you that you are going to lose money. But we have seen your account already. We are appealing to you, please stop and let’s do what is right, what is legal, so that Nigeria can continue to be a good place for you and to live in.”
