MetroBusinessNews

CBN, BDCs consider export proceeds to boost dollar liquidity

The Central Bank of Nigeria (CBN) and the Bureau De Change operators are considering export proceeds as another window for dollar supply.
Currently, the BDCs are accessing foreign exchange under one window which is the proceeds of the international money transfer.
One of the agendas being pushed by the BDCs is for the CBN to create a window for foreign investors to come in through the BDCs and exit the same way.
Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON) believes strongly that if these windows are opened for BDCs, it will help boost dollar liquidity in the market.
However, about 2,700 retail currency traders are expected to access dollars to the tune of $8,000 from the IMTOs on Thursday. Gwadabe said on Monday that by the end of today, the list of qualified BDCs for dollar allocation will be known.
Naira on Monday appreciated by N2.00k or 0.40 percent to close at N495 per dollar, higher in value than N497 closed on Friday, BusinessDay findings show. It closed at N399 at the BDC segment of the foreign exchange.
At the inter-bank spot foreign exchange market, the local currency depreciated slightly by N0.25k or 0.08 percent as it closed at N305.25k on Monday from N305 per dollar last week, data from FMDQ revealed.
Nigerians in Diaspora had in 2015, sent home $21 billion which boosted the local forex market in 2016, figures released by Senior Special Assistant to the President on Foreign Affairs and Diaspora Matters, Abike Dabiri-Erewa, showed.
Dabiri-Erewa said, “In 2016 they remitted $35 billion which is higher than what was remitted in 2015. This remittance by Nigerians living abroad is the highest in Africa and the third largest in the world.”
But Gwadabe disclosed that less than five per cent of the 2016 Diaspora funds were captured officially by the CBN because of exchange rate divergence, which discourage Nigerians in Diaspora from sending their funds home through official channels.  He said that harmonisation of the multiple exchange rates in the country, will make the rate for Diaspora remittances attractive to Nigerians in Diaspora.
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