Naira appreciates as BDCs brace up for fresh cash

The naira has appreciated against the dollar at the parallel market, as banks complete documentation for forex sale to bureau de change (BDC) operators.

The Nigerian currency on Wednesday afternoon gained 5 points to exchange at N390 to the dollar, from N395 it traded on Tuesday, representing an appreciation of 1.01 per cent.

The naira also hedged against the pound sterling and the euro as it traded at N500 and N420, from N510 and N426 it posted on Tuesday.

At the bureau de change segment of the market, the naira hedged against the dollar, the pound sterling and the euro as it closed at N490, N500 and N420 respectively, from N495, N510 and N426 posted on Tuesday.

The naira extended gains at the official interbank market as it closed at N317 to the dollar, from N320.25 it posted on Tuesday.

Currency traders expressed optimism that the intervention of the Central Bank of Nigeria (CBN) at the Forex market would translate to a steady recovery of the naira.

Meanwhile, Harisson Owoh, a bureau de change (BDC) operator, said that Deposit Money Banks (DMBs) were perfecting the documentation required to commence the sale of dollars to BDCs.

Owoh said that the exercise would, sooner than later, see to the appreciation of the nation’s currency at the forex market.

NAN reports that the CBN had on Tuesday re- issued the guidelines on the sale of dollars from proceeds of international money transfer operators (IMTO) by DMBs to BDCs.

The CBN said that each BDC would be allowed to purchase a maximum of 30, 000 dollars per week from an authorized dealer.

The apex bank warned that any violation of procedures by BDCs would be punished accordingly.