Naira strengthens against dollar ahead of CBN FX sales to BDCs

The naira has strengthened at the parallel market to N448 against the dollar after the Central Bank of Nigeria (CBN) announced that it would resume dollar sales to bureau de change operators.

Before the announcement, the naira had been trading as low as N480 against the dollar.

Upon resumption, the apex bank said BDCs must not exchange the naira at more than N386/$ to end-users.

The CBN said its decision to resume FX sales to BDCs is to enhance accessibility to forex “particularly to travellers” since the resumption date for international flights has been announced.

The CBN also said deposit money banks shall continue to sell forex for travel-related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents, passport, air ticket and visa.

Musa Nuhu, director-general of the Nigerian Civil Aviation Authority (NCAA), announced on Thursday that international flights will resume on September 5; shifting it from August 29.

Aminu Gwadabe, president of the Association of Bureau de Change Operators of Nigeria (ABCON), said the resumption of foreign exchange to BDCs would usher in stability in the market.

Gwadabe said BDCs would remain the potent monetary tool of the CBN exchange rate stability instrument.

Source: TheCable

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