Naira gains, exchanges for N470/$


The naira gained slightly on Friday, exchanging for N470/$ in the parallel market in the evening, after selling at N476/$ in the morning.

This followed the Central Bank of Nigeria’s announcement on Thursday to resume forex sales to the Bureau De Change segment of the market.

In a circular on Thursday, the CBN said, “As part of efforts to enhance accessibility to foreign exchange particularly to travellers following the announcement of limited resumption of international flights by the Honourable Minister of Aviation, commencing with Abuja and Lagos, the Central Bank of Nigeria hereby wishes to inform the general public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from September 07.

“Consequently, purchase of foreign exchange by BDCs shall be on Mondays and Wednesdays in the first instance.”

The President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said, “The naira has gained over $5/$ today at the close of business due to only announcement of the resumption of sales to the BDCs as it closed at N470/$ from all high of N476/$ in the morning.

“With the take off of the policy, we expect a strong naira positivity in the market.”

He said the BDCs had always remained the potent monetary tool of the CBN exchange rate stability instrument.

Gwadabe said, “The resumption of sales to the BDCs will in no doubt inject a robust liquidity to the critical retail end sector of the market and usher in stability, discourage, hoarding and speculation.

“ABCON has embraced innovation, awareness and capacity building measures to guide members and ensure their total compliance with extant foreign exchange regulations.”

It would be recalled that the CBN resumed foreign exchange sales in April ending to commercial banks, to be made accessible to customers wishing to pay school fees, and businesses making essential imports needed to revamp economic activities across the country.

This followed its one-month forex sales suspension at the onset of the lockdown occasioned by the COVID-19 pandemic.

The CBN had stated that it would resume foreign exchange sales to the BDCs for business travels, personal travels and other designated retail uses as soon as international flights resumed.

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