By Modupe Gbadeyanka
Fresh pressure has been mounted on the Naira following the decision of Central Bank of Nigeria (CBN) to cut down Dollar sales to Bureaux De Change (BDCs) operators in the country.
This has further depreciated Nigeria’s currency to N473 per Dollar at the parallel market.
According to Financial Vanguard investigations, the apex bank made the cut by 46 percent by selling $8,000 to each BDC through Travelex Nigeria Limited against $15,000 it usually sold per week to them.
Speaking on the issue, Chief Executive Officer of H.J Trust BDC, Mr Harrison Owoh, disclosed that the reduction came as a surprise to the market.
Mr Owoh said this was contrary to the general expectation that the dollar sale will be increased to $20,000 per BDC.
“That is why the currency is under pressure with the rate going up.”
Also, Chairman of the South West Zone of Association of Bureaux De Change Operators of Nigeria (ABCON), Mr Taiwo Ebenezer, said that the reduction in dollar sales was done to accommodate BDCs in other zones of the country.
“The dollar sales have been limited to BDCs in Lagos and Abuja, but ABCON recommended to CBN to find a way to accommodate BDCs in other zones. That is what the CBN has done though the reduction in supply in Lagos and Abuja has prompted the exchange rate to go up,” Mr Ebenezer told Finacial Vanguard.
He added that the CBN will definitely consider the impact on the rates and take a decision on whether to keep it at $8,000 per BDC across board or increase the quantity sold per BDC.
more recommended stories
Stocks May Open Lower Ahead of Fed Announcement
By Investors Hub The major U.S..
Firm Holds Educational Poultry Seminars for 700 Nigerian Farmers
By Modupe Gbadeyanka One of Nigeria’s.
NNPC, Mining Society Partner to Search for More Crude Oil Deposits
By Modupe Gbadeyanka Group Managing Director.
SEC Holds First 2018 CMC Meeting April 19
By Modupe Gbadeyanka The Securities and.