• Contact Us
  • About Us
Tuesday, August 26, 2025
  • Login
MetroBusinessNews
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate
No Result
View All Result
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate
No Result
View All Result
MetroBusinessNews
No Result
View All Result
ADVERTISEMENT
Home Economy

Naira strengthens as BDCs resume dollar sales

metro by metro
October 5, 2016
in Economy
0
Naira
0
SHARES
0
VIEWS
By: HOPE MOSES-ASHIKE
The nation’s currency is beginning to strengthen against the US dollar as it closed to a record high of N460/$, gaining N30 or 6.12 percent compared to N490/$ last week.
At the parallel market, the local currency gained N15.00k against the greenback as it closed at N475 on Friday, representing 3.06 percent compared to N490/$ on Thursday last week.
The naira appreciation is attributed to resumption of dollar sales to the end users by Bureaux De Change (BDC) operators. BusinessDay gathered that Travelex, a global foreign exchange dealer sold dollar to 820 BDCs last week which helped shore up the naira on Friday to N475/$.
Aminu Gwadabe, acting president of Association of Bureaux De Change Operators of Nigeria (ABCON) believe that naira will futher strengthen to N420 if the dollar is distributed to about 3,000 BDCs across the country.
“with the entrance of BDCs into the foreign exchange market, with the control of any other leakages, naira will strengthen further”, a source told Metrobusinessnews.com.
The source added that in the next couple of weeks 1,700 BDCs will receive dollar sales from Travelex, adding that the partnership between the two is transparent.
The Naira remained pressured this week as a result of illiquidity in virtually all segments of the FX market as the Naira/Dollar exchange rate at the parallel market crashed to an all-time low of N490.00/US$1.00 on Friday compared to N440.00/US$1.00 on Monday but later appreciated to N475/$ in the evening.
However, the exchange rate at the interbank has remained broadly stable as a result of frequent interventions by the Apex Bank. The Naira/Dollar spot rate opened the week at N308.50/US$1.00 on Monday but depreciated to N312.99/US$1.00 by midweek before appreciating to N305.31/US$1.00 by Thursday as the CBN intervened with dollar supply. The interbank spot rate closed the week at N311.62/US$1.00.
In the futures market, investors continue to take advantage of the OTC FX Futures to hedge exposures to the Nigerian market in a bid to limit currency movement risk. Accordingly, the total value of open OTC FX Futures contracts rose by US$614.1m M-o-M at the end of September. The Apex Bank issued US$1.0bn of the September 20 2017 instrument at N243.50/US$1.00 to replace the September 28 2016 instrument which matured during the week, analysts at Afrivest Securities limited said.

Read Also

Dollar, Longer-dated Treasuries, Others Slide As Trump Escalates Attack On Fed, Russia-Ukrainan Supply Concerns

Mixed Reactions Trail FG’s Medium-Term Debt Strategy, Analysts List Path To Sustainable Development

Hope Rises For Nigeria’s Currency As Dollar Drops On Powell’s Points To Possible September Rate Cut

Previous Post

IMF says Nigeria’s growth prospect to remain subdued at -1.7% in 2016

Next Post

Nigeria plans to raise 105 bln naira with local bond issue next week – reuters

Related Posts

Trump
Economy

Dollar, Longer-dated Treasuries, Others Slide As Trump Escalates Attack On Fed, Russia-Ukrainan Supply Concerns

August 26, 2025
FG To Start Paying Debt Service As Nigerian Economy Grows By 2.99% In Q1 2024-Edun
Economy

Mixed Reactions Trail FG’s Medium-Term Debt Strategy, Analysts List Path To Sustainable Development

August 25, 2025
Nigeria’s Banking Recapitalization: A ‘Too Big To Fail’ Scenario In The Making?”
Economy

Hope Rises For Nigeria’s Currency As Dollar Drops On Powell’s Points To Possible September Rate Cut

August 22, 2025
Uneasy Calm In Banking Industry Over FG Special Investigator’s Report
Economy

Commendations As CBN Plans Prosecution Of FX Deal Violators After Audit

August 7, 2025
Next Post
Debt Management Office

Nigeria plans to raise 105 bln naira with local bond issue next week - reuters

Ahead Of Agreed Minimum Wage, President Tinubu To Send Bill To NASS, Takeaways From Anniversary Broadcast

Tinubu Calls For New African Defence Doctrine, Proposes Permanent Forum For Military Chiefs

August 26, 2025
Trump

Dollar, Longer-dated Treasuries, Others Slide As Trump Escalates Attack On Fed, Russia-Ukrainan Supply Concerns

August 26, 2025
Nigerians Overstaying Visa Risk Serious Sanctions, US Warns, Says “No Honest Mistakes”

Trump Fires Fed’s Cook Alleging False Statements On Mortgage Forms

August 26, 2025
MetroBusinessNews

© 2022 Metro Business News

Navigate Site

  • Contact Us
  • About Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate

© 2022 Metro Business News

Go to mobile version