Naira To Appreciate Next Week As BDCs Expected To Get $15m

Having crashed to a low of almost N500 to the dollar in recent weeks at the parallel market, the naira will allegedly appreciate next week as bureau de change operators would be getting around $15 million.

The Central Bank of Nigeria(CBN), had directed through a circular to authorised dealers, that all agents to approved International Money Transfer Operators (IMTOs) sell foreign currency accruing from inward money remittances to licensed BDCs. The directive was meant to ensure stability of the exchange rate and encourage participation of critical stakeholders in the foreign exchange market.

The naira which sold as low as N390 to the dollar last week had begun to gain strenght last weekend after about 820 BDCs bought foreign exchange from IMTOs. President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, told LEADERSHIP that about 820 BDCs had bought $10,000 each last weekend.

Noting that the association was partnering with Travelex, he said about 1,500 BDCs would access $15,000 each from the IMTO this weekend. This he said, would further give strength to the naira at the parallel market in the coming days.

The naira yesterday had closed slightly stronger selling at N473 to the dollar up from N476 which it sold on Wednesday.
Meanwhile, yields on Nigeria’s short-dated treasury bills fell across the board at an auction on Wednesday when the apex bank sold bills worth N129.67 billion. A total of N28 billion of 3-month paper was sold at 13.90 per cent compared to 14 per cent at the September 21 auction, central bank data showed on Thursday.
The bank sold N33.49 billion of 6-month debt at 17.09 percent after 17.27 per cent previously. It also sold N68.18 billion of 1-year bills at 18.25 per cent, lower than 18.30 per cent at the previous auction.

Total subscriptions stood at N311.40 billion compared to N399.71 billion at last month’s auction. Nigeria issues treasury bills to raise cash to fund the budget deficit, manage banking system liquidity and curb rising inflation.

Leadership reportage.

*This good news is bad news for some people milking the situation...lol