Naira stabilises at N265/$ as BDCs task CBN on sensitisation

The naira on Tuesday closed stable against the dollar at the autonomous market, as demand slowed during the festive holiday.

Naira closed at N265 and N267 against the dollar at the Bureau De Change (BDC) segment of the foreign exchange (FX) market and the parallel market, respectively.

However, the local currency depreciated slightly in value against the dollar by N0.07k or 0.04 percent at the inter-bank FX market. It closed at N199.41/$ on Tuesday compared with N199.34/$ traded last week Wednesday before the festive holiday.

Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON), said at N265/$ naira was depreciating as a result of short supply. He added that the dollar being sourced from the open market was not enough as the official supply market remained closed due to the festive season.

Meanwhile, the BDC operators have called on the Central Bank of Nigeria (CBN) to sensitise operators, train them to avoid the growing mistrust between the operators and the regulators.

In a statement by Gwadabe, the CBN should as a matter of urgency come out with a road map of where BDCs operations are going to be in 2016.

It is the hope of the BDCs that the military-style CBN directives on the BDCs mode of operation will see significant changes in the nearest time.

“It is also our believe that the present leadership of PMB will continue to block leakages, diversify the economy and empower small-scale business to mitigate the falling oil prices, depletion of fiscal buffers and dwindling oil reserves,” Gwadabe said in the statement.

The operators said the current CBN engagement of media war and derogatory remarks on BDCs from some of its director on TV stations would only worsen the fragile naira and not strengthen it.

According to the statement, the BDCs operators have in various means and forms over time till now supported and partner the CBN in its general price stability objectives, and specifically the FX rate stability in the market. There is no gain saying the facts that the BDCs sub sector have since 2006 to date remained the most effective and efficient CBN monetary tool of foreign exchange stability.

“The bogus foreign exchange regimes of the past have always created super profits banks and assemblies of glorified importers, turned manufacturers in our economy.

“However, the BDCs note with dismay the media and the regulators blamed on BDCs as the major cause of naira volatility in the market and closing their eyes on the activities of major participants in the foreign exchange market.”