Naira firms as 1,500 BDCs receive dollar from Travelex – Businessday

Naira on Friday maintained its gain over the US dollar after a total of 1,500 Bureaux De Change (BDCs) operators mostly based in Lagos, got supply from Travelex, a global currency dealer, at $15,000 each.

Consequently, naira appreciated by N2.00k at the BDC segment of the foreign exchange market as it closed at N470 against the dollar on Friday. This represents 0.42 percent compared to N472/$ closed the previous day.

At the parallel market, the local currency closed at N473 per dollar, the same as the previous day.  The naira also firmed slightly against the greenback gaining N0.04k or 0.01 percent as it closed at N306.75 on Friday from N306.71 closed the previous day at the inter-bank foreign exchange market according to the data obtained from FMDQ.

Currency dealers expressed optimism that the nation’s currency will further strengthen when all the 3,000 BDCs get dollar supply from Travelex.

Aminu Gwadabe, acting president of Association of Bureaux De Change Operators of Nigeria (ABCON) had told BusinessDay that BDCs at other States like Abuja, Port Harcourt, Enugu, Kaduna, Kano, among others will commence biometrics with Travelex next week, preparation to purchase dollar.

He noted that about 820 BDCs purchased dollar from Travelex at $10,000 each. BusinessDay gathered that part from dollar sales by Travelex, deposit money banks are also selling to some BDCs across the country.

Gwadabe explained that resumption of dollar sales by BDCs has helped checkmate the spite and volatility in the market, adding that the naira which traded at N495 peer dollar last week is beginning to strengthen.

“all Nigerians should do less of nationalism and do more of economic patriotism”. Gwadabe told BusinessDay by phone.

Analysts at Cowry Asset Management limited anticipate stability in the foreign exchange market on improved forex supply.