No respite as naira depreciates again – The Cable

The Naira on Monday depreciated against the dollar at the parallel market, against the expert predictions that it would firm due to forex sales to bureau de change (BDC) operators.

The currency lost N3 to exchange at N393, from N390 posted on Friday; while it traded at N505 and N435 against the pound and the euro respectively.

The naira appreciated at the official interbank market to close at N317.34, from N320.25 posted on Friday.

Traders at the market said that the demand for the greenback was still on the high side.

The market was eagerly awaiting the sale of forex by banks to BDCs during the week, but that is yet to materialise.

“Authorised Dealers shall sell foreign exchange cash to BDCs subject to a maximum of USD30, 000.00 (Thirty Thousand United States Dollars) to a BDC per week,” the CBN had earlier said.

“A BDC shall nominate its preferred Authorised Dealer (DMB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.

“The selling rate by the Authorised Dealers to BDCs shall be the buying rate from IMTP plus a margin not exceeding 1.5%

“Foreign exchange cash purchased by BDCs from Authorised Dealers (Ads) shall be sold to foreign exchange end-users at a rate not exceeding two (2) percent margin above the buying rate.”

BDC operators remain hopeful that fresh cash would be pumped into the market in the course of the week.