Home Business Naira May Rebound as Banks Begin Sale of Forex to BDCs

Naira May Rebound as Banks Begin Sale of Forex to BDCs


Naira, Nigeria’s currency may soon be on the rebound as banks began moves to sell foreign exchange to Bureau De Change (BDC) operators.

The News Agency of Nigeria (NAN) reports that one Mr Harisson Owoh, an accountant, on Monday said the Naira was on the path to recovery as banks get set to sell Forex to BDCs.

Owoh, a BDC operator, told the News Agency of Nigeria (NAN) in Lagos that its members had received signals from banks to fund their accounts in readiness for the sale.

According to him, the resumption in dollar sale to BDCs will see the dollar appreciate in all the segments of the forex market.

The Central Bank of Nigeria (CBN) had, in a circular, directed Deposit Money Banks (DMBs) to resume the sale of Forex from proceeds of international money transfers to BDCs.

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The CBN said that the move was to bring in critical stakeholders in the Forex market to participate in driving its vision for a greater flexibility in the nation’s exchange rate policy.

Meanwhile, the Naira closed at N395 to the dollar on Monday afternoon, maintaining its Friday rate at the parallel market.

The Nigerian currency also traded at N510 and N420 to the Pound Sterling and the Euro respectively, from N505 and N422 it posted on Friday.

At the BDC segment of the market, the Naira was sold at N395 to the dollar, while the Pound Sterling and the Euro exchanged at N510 and N426 respectively.

The Naira strengthened against the dollar at the official interbank segment as it closed at N315.66 from N316.13 posted on Friday.


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