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No More Street Forex Hawking, ABCON Warns

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The Association of Bureau De Change Operators has said it will commence what it called ‘Operation No Street Trading’ to stop the hawking of foreign exchange by BDC operators.

The President, ABCON, Alhaji Aminu Gwadabe, said this was part of the resolutions made unanimously by BDC directors at the meeting of the operators on Tuesday in Lagos.

A copy of the resolutions which was obtained by our correspondent on Wednesday said, “All operators to collaborate in bringing down the forex rates in the market; street trading by BDC should be discouraged/banned and ABCON will commence operation ‘no street trading’.

“BDCs should improve return rendition to regulatory authorities; margin review to meet operational requirements; widening the scope of transactions; digitalisation of BDC operations.

“ABCON to punish errand members; ABCON compliance officer and staff to commence nationwide supervision of BDC operations.”

The punch media had reported on Saturday that the BDC operators got the United States dollar from the Central Bank of Nigeria at N393 but sold it for N494 on Friday.

Bank sources had disclosed that the CBN was providing $10,000 to each of the BDCs twice in a week.

The country’s currency was recently devalued after the CBN adopted the NAFEX rate of N410/$1 as its official exchange rate.

ABCON had in a statement on Sunday advised foreign exchange users and the general public to patronise only BDC operators licensed by the CBN in order to get dollars at the approved rate.

Gwadabe said the parallel market activities had for years become major drivers of the exchange rates, adding that control over such transactions had become burdensome.

He said forex speculators were capitalising on the state of the forex market and the naira to sell dollars above the CBN-approved margin.

Gwadabe said CBN-licenced BDCs were not selling dollars to end-users above the N2 per dollar margin set by the regulator to protect the naira against forex speculators and ensure exchange rate stability.

A professor of economics, Babcock University and past President, Chartered Institute of Bankers of Nigeria, Prof. Segun Ajibola, said there was a need to redefine, re-examine and restructure the entire ownership, operations and everything that had to do with the operations of BDCs in Nigeria.

He said, “To say there are unlicensed BDCs operators is very annoying to hear. Where are the illegal BDC operators getting their forex?

“If there are illegal BDCs operators, which we have been hearing about for ages, it will take just a bold step from the regulators to close their shops within 24 hours.”

He added, “I have never seen the type of forex dealers who hawk dollars on the streets even in other African countries that I have visited. Why are they in business in Nigeria? We have had lots of laws pronouncing the street hawkers as illegal. So, why are they still in business?

“Unless we regulate all these segments of the market, we cannot get our forex management right in this country. There is a need for political will, strong determination and courage on the part of regulators to do all these.”

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Naira

Exchange Rate in Nigeria Today; Thursday, June 24, 2021

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Dollar to Naira Exchange Rate - Investors King

The Nigerian Naira exchange rates to the United States Dollar and other currencies remained pressured as economic uncertainties amid weak macro-economic fundamentals continue to weigh on the currency outlook.

The local currency traded at N500 to a United States Dollar on the Parallel Market known as Black Market on Thursday morning. Against the British Pound, the Naira exchanged at N710 and N595 billion to a Euro.

Nigeria’s rising inflation rate, unemployment rate, weak new job creation and low earnings drag on consumer spending, retail sales and economic growth in general. The weak household income and rising import cost in a largely import-dependent nation have continued to hurt demand and business activities in general. See the Naira Exchange rate below.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
24/06/2021 495/500 705/710 590/595 62/69 400/410 300/322
23/06/2021 495/500 705/710 585/592 62/69 400/410 300/322
22/06/2021 495/500 703/713 585/595 62/69 400/410 300/322
21/06/2021 495/500 703/710 585/592 62/69 400/410 300/325
18/06/2021 492/498 700/710 585/595 62/69 400/410 300/325
17/06/2021 483/493 700/710 590/600 62/69 400/410 300/322
16/06/2021 497/502 707/713 600/606 62/69 400/410 300/322

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
24/06/2021 485/495 700/718 580/605
23/06/2021 485/495 700/718 580/605
22/06/2021 485/495 700/718 580/605
21/06/2021 480/490 680/710 550/603
19/06/2021 475/490 680/715 580/603
18/06/2021 475/485 680/715 580/603
17/06/2021 478/490 690/710 590/603
16/06/2021 495/500 707/718 600/609
15/06/2021 495/500 707/718 600/609
14/06/2021 490/498 705/718 600/608

Central Bank of Nigeria’s Official Naira Rates

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Naira

Naira Falls to N500/US$1 at Black Market on Monday

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Naira - Investors King

Despite efforts by the Central Bank of Nigeria (CBN) to improve dollar liquidity across the foreign exchange segments and prop up Naira value, the Nigerian Naira dipped to N500 against the United States Dollar on Monday at the nation’s black market.

Last week, the CBN announced plans to increase forex allocation to Deposit Money Banks in a bid to ensure Nigerians access forex at a fair rate and not forced to patronise the black market operators with exuberant rates.

The CBN agreed to increase the amount allocated to banks for travellers, Small and Medium Enterprises among others. The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks will be replenished so long as they retire the initial amounts to the satisfaction of the CBN”, stated Mr. Osita Nwanisobi, the Acting Director, Corporate Communications Department at the CBN.

The Naira quickly gained against its global counterparts, improving to N493 against the American Dollar last week before resuming its long-term bearish trend to N500/US$1 at the black market on Monday 21, June 2021.

The embattled currency depreciated in value against both the Euro and British Pound, exchanged at N590 and N710, respectively.

At the NAFEX window, the CBN new adopted official rate, the Naira traded at N411.67 to a United States Dollar on Monday while investors transacted $94.17 million during the trading hours of Monday.

At the Bureau De Exchange section of forex, Naira sold for N495 per US Dollar, N715 to a British Pound and N603 to a Euro.

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Naira

Nigerian Naira Exchange Rates; Tuesday, June 22, 2021

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Naira - Investors King

 The Nigerian Naira lost N2 against the United States Dollar on Monday to N500 despite efforts by the Central Bank of Nigeria to prop the local currency value.

The embattled currency remained pressured at N710 to a British Pound and N590 to a single Euro.  Naira opened at N500 to a United States Dollar on Tuesday.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
22/06/2021 495/500 703/713 585/595 62/69 400/410 300/322
21/06/2021 495/500 703/710 585/592 62/69 400/410 300/325
18/06/2021 492/498 700/710 585/595 62/69 400/410 300/325
17/06/2021 483/493 700/710 590/600 62/69 400/410 300/322
16/06/2021 497/502 707/713 600/606 62/69 400/410 300/322

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
22/06/2021 485/495 700/718 580/605
21/06/2021 480/490 680/710 550/603
19/06/2021 475/490 680/715 580/603
18/06/2021 475/485 680/715 580/603
17/06/2021 478/490 690/710 590/603
16/06/2021 495/500 707/718 600/609
15/06/2021 495/500 707/718 600/609
14/06/2021 490/498 705/718 600/608

Central Bank of Nigeria’s Official Naira Rates

Date Currency Buying(NGN) Central(NGN) Selling(NGN)
6/21/2021 US DOLLAR 409.2 409.7 410.2
6/21/2021 POUNDS STERLING 567.6422 568.3358 569.0294
6/21/2021 EURO 486.5797 487.1743 487.7688
6/21/2021 SWISS FRANC 444.0586 444.6012 445.1438
6/21/2021 YEN 3.7166 3.7212 3.7257
6/21/2021 CFA 0.7231 0.7331 0.7431
6/21/2021 WAUA 583.9237 584.6372 585.3507
6/21/2021 YUAN/RENMINBI 63.2634 63.3412 63.4189
6/21/2021 RIYAL 109.1113 109.2446 109.3779
6/21/2021 SOUTH AFRICAN RAND 28.7174 28.7525 28.7876

 

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