ABCON Directs Members to Sell Dollar at N380/$

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  • ABCON Directs Members to Sell Dollar at N380/$

The Association of Bureaux De Change Operators of Nigeria (ABCON) on Monday directed all members of the association to comply with the new exchange rate from the Central Bank of Nigeria.

The apex bank had adjusted the official Naira/dollar foreign exchange rate from N307/$1 to N360/$, while the apex bank directed the International Money Transfers Services Operators (IMTOs) to sell to Deposit Money Banks (DMBs) at N376 per US dollar.

Accordingly, DMBs were directed to sell at a profit of N1 to the central bank at N377/$. CBN would then sell to the Bureau De Change operators at N378 per US dollar.

BDCs were directed to sell to end-users at a rate not more than N380 a US dollar.

This was after global oil price plunged to a 18-year low of $24 per barrel and the nation’s reserves declined below $36 billion for the first time in 29 months, heighten CBN precarious position as COVID-19 cases jumped to 35 with one death.

Besides the devaluation of the Naira to accommodate current economic macros, the apex bank has announced a N3.5 trillion stimulus package to reduce the impact of the virus on the economy, while DMBs have been directed to adjust tenors on loans to accommodate present economic disruption and increase credit provision to the economy.

In response to the situation, ABCON said: “In recent times, governments across the world, in a bid to stop the spread of the deadly Covid-19 virus, have imposed travel restrictions which have led to a sharp decline in the volume of global passenger travel.

“Trade is also at its lowest level globally due to widespread shutting down of businesses in most countries especially China which accounts for about 25 per cent of Nigeria’s imports.

“One of the consequences of these developments is a general decline in demand for trade and travel-related services including foreign exchange.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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