Naira strengthens further as BDCs expect $25m from IMTOs

he Naira appreciated further to N455 against the US dollar on Wednesday following improved liquidity in the foreign exchange market.

The naira which gained N2.00k over N457 per dollar quoted on Tuesday at the parallel market is expected to strengthen further as the Bureau De Change (BDC) operators receive dollar allocation worth $25 million from the International Money Transfer Operator (IMTO).

Today, Travelex, a global currency dealer will sell $8,000 each to 3,124 BDCs at the rate of N381 per dollar.

Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON) told BusinessDay that the 3,124 BDCs have been cleared for trading today.

The local currency also firmed marginally at the inter-bank spot forex market, closing at N306.00k as against N306.25k the previous day, according to data from FMDQ.

The Central Bank of Nigeria (CBN) on Tuesday sustained the supply of foreign exchange to the market as it pumped $195 million comprising of $150 million for the wholesale auction and $45 million in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

 Isaac Okorafor,CBN acting director, Corporate Communications, had said that the Apex Bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.