Naira Gains Ground At Parallel Market At N374/Dollar

The naira, on Monday, July 25, firms up slightly against the dollar at the parallel market, exchanging at N374 to dollar against, N378 last Friday.

However, on the official market, the naira slipped 2.5 per cent to a new closing low of N310 per dollar, failing to lure in local investors or foreign players as trade dried up a day before an expected interest rate hike from the CBN.

The currency had opened at a record low of 302.10 and traded a total of just $8.64 million by the close, far less than $100.54 million on Friday, when the CBN spurred the market by selling some of its dollars.

In recent development, commercial banks have shown little or no interest in implementing the Central Bank of Nigeria (CBN’s) directive that they sell dollar to bureaux de change (BDC) operators, The Nation has gathered.

The lenders are complaining that the CBN did not spell out their margin in the said transaction, which makes the zeal to implement it almost non-existent.

The CBN had over the weekend, lifted its six-month ban on forex sales to BDC operators. In a circular to authorised dealers titled: “Sales of Foreign currency proceeds of international money transfers to Bureaux De Change operators”, signed by the CBN Acting Director, Trade & Exchange, W.D Gotring, the apex bank said the policy shift would ensure the stability of the exchange rate and boost participation of all critical stakeholders in the foreign exchange market.

Confirming the development, President Association of Bureau De Change Operators of Nigeria (ABCON) Aminu Gwadabe, said the lenders have shown high level of unpreparedness to execute the CBN’s directive to sell the greenback to BDCs.

He said the BDCs have no direct access to Western Union and MoneyGram, which are the key international money transfer agents, hence the operators rely on banks to access the funds.

He also disclosed that most of the offshore inflows are dry transactions, meaning that they are cash-in cash-out deals with nothing left for BDCs.

 

 

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