Naira firms as BDCs await CBN’s circular on autonomous supply

The naira on Monday strengthened against the dollar as the Bureau De Change operators (BDCs) await a circular from the Central Bank of Nigeria (CBN) on how to get supply from international oil companies.

Consequently, the naira firmed against the dollar by N6 or 2 percent each at the BDC segment of the foreign exchange (FX) market and the parallel market.

After trading on Monday, the local currency closed at N294/$ compared with N300/$ traded last week at the BDC segment of the FX market. It closed at N296/$ yesterday as against N302/$ on Thursday last week.

However, at the inter-bank FX market, it depreciated slightly in value against the greenback by N0.28k or 0.14 percent. It closed at N197.54k/$ on Monday from N197.26k/$ on Friday last week, according to data from FMDQ.

Meanwhile, the CBN’s clearing rate remained unchanged, closing at N197/$ at the inter-bank FX as seen on FMDQ website.

Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON), told BusinessDay last night that the CBN would assist them source dollar from international oil companies.

This, he said, will help improve FX liquidity in the market. “We are waiting for the CBN circular. The CBN is trying to issue a circular on how and where to get dollar. It is planning to provide oil company foreign exchange,” he said by phone.

Banks are now sending messages to their customers informing them to transfer FX cash deposit paid into their account.