BDCs agree to sell dollar at N400 – Businessday

Bureau De Change (BDC) operators yesterday took a decision to sell dollar at N400, which would help reduce pressure on Travelex, the authorised global currency dealer.

By selling at the resolved current rate, the retail currency exchangers will now sell at 2.6 percent margin, which is 6 percent above the 2 percent prescribed by the Central Bank of Nigeria (CBN).

The BDCs will now buy from Travelex at the rate of N390 and sell at N400 per dollar. Although, the decision is yet to be reflected in the market, naira yesterday appreciated in value against the dollar by N5 or 1.06 percent to close at N465 from N470 it traded since last week at the parallel market.

The local currency closed at N464 at the BDC segment of the foreign exchange market, gaining N1 or 0.22 percent from N465 the previous day.

At the interbank spot market, naira strengthened significantly by N44.95k to close at N305.27. This represents 12.83 percent compared with N350.22k closed the previous day, data from FMDQ show.

Aminu Gwadabe, acting president, Association of Buraeu De Change Operators of Nigeria (ABCON), told BusinessDay that the decision was taken after a meeting with the CBN and some security agencies yesterday.

The operators are determined to support the government and the CBN to stabilise the naira, he said. “We have determined that this is the rate we want to maintain. We have put measures in place to ensure compliance,” Gwadabe said, warning that “any BDC that violates the rule by selling above the current will be penalised.”

Gwadabe disclosed that the association was collaborating with CBN and four banks to use their facilities to distribute dollar to BDCs outside Lagos. The banks are Fidelity Bank, FCMB, First Bank of Nigeria Limited and Diamond Bank.