Naira falls at interbank, parallel market on dollar shortage

Naira yesterday depreciated slightly in value at the interbank and parallel markets following the persistent dollar shortage at the foreign exchange market.

The naira lost N0.46k to close at N316.83k yesterday. This is about 0.15 percent fall compared with N3136.37k/$ it closed the previous day, according to data from FMDQ.

At the parallel market, it weakened by N1.00k or 0.26 percent to close at N382/$ yesterday from N381/$ on Monday, BusinessDay findings show. However, the local currency gained N2 or 0.53 percent against the dollar as it closed at N375/$ yesterday as against N377/$.

The Central Bank of Nigeria’s (CBN) new forex window opened for Bureau De Change (BDC) operators through the sale of proceeds from the international money transfers is yet to be implemented, as banks are not selling to BDCs.

Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON), said the policy caught banks unaware, as they were afraid the implementation might affect their volume of transaction and profitability.

The CBN had in circular, signed by Gotring W. D, acting director, trade and exchange department, directed authorised dealers who are agents of approved international money transfers operators to sell foreign currency accruing from inward money remittances to licensed BDCs with immediate effect.

This, according to the CBN, is to ensure stability of the exchange rate and encourage participation of all critical stakeholders in the foreign exchange market.