Bureaux De Change (BDCs) are expected to fund their naira accounts to the equivalent of $10,000 ahead of dollar sales to operators scheduled September 7 by the Central Bank of Nigeria (CBN).
President Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe explained that each BDC’s account will be funded with the naira equivalent of the $10,000 sale by September 4th.
In a note to all BDCs, ABCON chief said the apex bank had warned that any act of hoarding and speculation will be penalized, urging members to “trade only within allowable exchange rates with reliable documentation”. While the weekly sales volume is $10,000.0 per BDC, the CBN directed BDCs to buy at N384 and sell at a cap of N386.00/$1.00.
[READ MORE: CBN Begins $20,000 Per Week Sales To BDCs Sept. 7
The naira has also recovered at the official market gaining 1.3 per cent against the dollar following information on resumed dollar sales to BDCs. The naira at the weekend opened for trade at N385.50 per dollar on the official market, supported by the CBN. It later recovered to close at 381 per dollar, where it has been stuck since July, market data on naira rates movement showed.
The CBN in a circular last week said it will restart dollar sales to BDCs from September 7 after it suspended auctions in March due to a coronavirus-induced lockdown and after a 15 per cent devaluation. The CBN has made several moves to unify the rates , bowing to pressure from international lenders to merge its multiple exchange rates, eliminating arbitrage which has cost the country billions in reserves as it tried to defend the naira.
Report from Afrinvest West Africa, an investment and research firm, said the external reserves climbed 0.3 per cent week-on-week to settle at $35.7 billion as at August 28. Also, Brent gained 4.3 per cent week-on-week to settle at $45.6/bbl., reflecting improved sentiment in the oil market. Activity level weakened by 48.6 per cent at the “Investors & Exporters Forex Window w to settle at $163.2 million from the previous week’s $317.4 million.
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