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Tuesday 27 September 2016

Naira crashes to N445/$1 at parallel market

But according to Aminu Gwadabe, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), the current rate of the naira at the parallel market was not a true reflection of the value of the currency.

He attributed the development to the activities of speculators, which he said are taking advantage of the poor implementation of the Central Bank of Nigeria (CBN) policy requiring banks to sell dollars to bureau de change (BDC) operators.

Some currency traders also said the demand from parents buying dollars to pay school fees abroad was exerting pressure on the FX market.

To analysts at CSL Stockbrokers Limited, the effects of low oil prices and production disruptions are having significant impact on dollar receipts by the country.

However, Gwadabe assured that the BDCs were set to key into Travelex platform for forex sales.

Travelex has the technology to sell forex to about 1,000 BDCs in a couple of hours, which is a major advantage.

He said that biometric registration of BDCs and subsequent funding was on-going, a move he said would lead the naira to the path of recovery.

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