CBN Reviews Rates For BDCs To N360
Having crashed the rates at which banks sell dollars to their customers for invisible to N360 per dollar,the Central Bank of Nigeria (CBN), yesterday reviewed the foreign exchange rates for bureade change operators to N360 to the dollar.
BDC operators had complained about the disparity in rates especially as they recorded a loss of N130 million last week following the firming up of the naira at the parallel market when the difference in the value of the local currency at the interbank and parallel market closed.
The BDC operators were contemplating not buying dollars this week as the rate fixed by the CBN at which they buy was N381, higher than the rate at the parallel market as well as the new rate for invisibles at the interbank market.
President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe yesterday said the buying rate for BDCs would now be N350 and selling rate would be N360 to the dollar. As at last week, BDCs were buying dollars from the CBN at a forward rate of N381 to the dollar and selling at N399 to the dollar.
Gwadabe who commended the CBN for heeding the appeal of BDCs for a level playing field for all players in the foreign exchange market pledged the commitment of operators in the sector in collaborating with the apex bank to sustain the gains recorded by naira against the dollar.
The CBN had on Monday pegged the selling rate for invisibles such as Basic/Personal Transport Allowances (B/PTA) medicals and school fees at N360 to the dollar within the banking hall.
In ensuring that there is enough liquidity at the forex market to meet demand, the CBN has so far injected more than $2 billion into the market to meet wholesale forwards as well as invisibles demand since it started its intervention in the foreign exchange market five weeks ago.
The liquidity injection by the apex bank had crashed dollar rates at the parallel market to between N375 in Lagos and N365 in Abuja. Although the value of the naira dropped to N380to the dollar on Monday, it firmed slightly to N379 yesterday. Bringing the difference between the interbank for invisibles and parallel market to N19 as against over N200 difference a month ago.
