The Nation Newspaper

Tag: Association of Bureau De Change Operators of Nigeria (ABCON)

  • Naira weakens against dollar at parallel market

    Naira weakens against dollar at parallel market

    The Naira on Wednesday weakened against the Dollar at the parallel market.

    The Nigerian currency lost 8 points to exchange at N398, weaker than N390 recorded on Tuesday, while the Pound Sterling and the Euro closed at N485 and N415.

    At the Bureau de Change (BDC) window, the Dollar was sold at N362 to the dollar, while the Pound Sterling and the Euro closed at N483 and N430.

    Trading at the interbank window saw the Naira closed at N306.2 to the Dollar.

    Traders at the market said that they expected the Naira to appreciate by Thursday as BDCs gets additional dollar allocation from CBN.

    Meanwhile, Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said that the additional injection of $10,000 by the CBN to BDCs would help to checkmate speculation.

    Gwadabe said that CBN’s action justified its determination to continue to strengthen the Naira and get it out of the grips of speculators and hoarders.

    NAN reports that CBN, last week, stated that it had increased the volume of Dollar sold to BDCs from 8,000 to 10,000 dollars bi-weekly.

    The apex bank hoped to stabilise the Naira exchange rate through its interventions at the foreign exchange market.

     

  • CBN to inject another $10,000 to BDCs

    CBN to inject another $10,000 to BDCs

    The Central Bank of Nigeria (CBN) will inject additional 10,000 dollars proceeds of International Money Transfer Services Operators (IMTSO) to 3135 Bureau De Change Operators nationwide, Alhaji Aminu Gwadabe says.

    Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON) said this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

    According to him, the move by the CBN is to checkmate the activities of currency hoarders and speculators.

    NAN reports that the CBN had on Tuesday injected 10,000 dollars to BDCs nationwide.

    “Providing liquidity into the BDC subsector is the rat poison that will smoke the rat out of the hole in terms of speculation and hoarding.

    “The CBN’s action justifies its determination to continue to strengthen the Naira and get it out of the grips of speculators and hoarders,” Gwadabe said.

    The ABCON chief commended the “doggedness of the CBN in its interventions in the entire official window.

    NAN also reports that the CBN had on Monday vowed to stamp speculators out of the nation’s foreign exchange market through its interventions.

    The move by the CBN to rightfully explore the BDC window in stabilising the Naira exchange rate has shown the apex bank as a listening institution geared toward ameliorating the plights of FOREX end users.

     

  • Expert predicts naira appreciation as BDCs receive more Diaspora remittances

    Expert predicts naira appreciation as BDCs receive more Diaspora remittances

    Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) has said that the naira will soon bounce to glory as BDCs are set to receive more Diaspora remittances.

    Gwadabe told the News Agency of Nigeria (NAN) on Tuesday in Lagos that the improved inflows of Diaspora remittances into the economy, in spite of falling oil prices, would fast track rate convergence and unification.

    According to him, the increased inflows will help the CBN to address the dwindling confidence of foreign investors in assuring them of meeting the liquidity needs of the BDC sub-sector rather than that of the inter-bank market.

    The financial operator explained that foreign investors relied heavily on the liquidity from the BDC sub-sector in informing their decisions on the economy.

    “The impacts of this development will afford the CBN to glut the BDCs sub-sector for a better rates stabilisation,’’ Gwadabe said.

    The association’s president urged currency hoarders and speculators to stay away from their nefarious activities as the naira would soon rebound to glory.

    NAN reports that the available records show that Diaspora remittances to the nation’s economy have grown from 21 billion dollars in 2015 to 35 billion dollars in 2016.

    A CBN circular dated Aug. 9, 2016 also authorised International Money Transfers Services Operators (IMTSO) to sell foreign currencies accruing from inward money remittances to BDCs.

    In a bid to liberalise the foreign exchange market, the apex bank had on Aug. 30, 2016 licensed 11 additional IMTSO’s.

  • Naira consolidates strength against dollar

    Naira consolidates strength against dollar

    The Naira on Friday in Lagos consolidated its position against the dollar at the parallel market, the News Agency of Nigeria (NAN) reports.

    The Nigerian currency on Friday afternoon exchanged between N380 (buying rate) and N390 (selling rate), stronger than N400 recorded on Thursday, while the pound sterling and Euro closed at N490 and N430.

    At the Bureau De Change (BDC) window, the Naira was sold at N399 to the dollar, while the pound sterling and the Euro were sold at N500 and N400.

    The Nigerian currency appreciated at the interbank market, closing at N307 to the dollar, from N308 posted on Thursday.

    Traders at the market said liquidity boost at the interbank market by the CBN was fast forcing the rate down at the market.

    Meanwhile, Alhaji Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), said CBN-licenced BDCs would incur regulatory losses of N130 million this week.

    Gwadabe told NAN that the losses were coming from CBN’s disparity in applicable exchange rates among players in the market.

    According to him, the public has refused to buy foreign exchange from BDCs for invisibles such as medicals, school fees, personal and business travel allowances at a rate above N375 to the dollar.

    The financial expert urged the CBN to promptly address the issue.

     

  • Naira to sell at N415/$ as CBN sustains intervention – Gwadabe

    Naira to sell at N415/$ as CBN sustains intervention – Gwadabe

    The naira will trade at N415 to a dollar as the series of intervention by the Central Bank of Nigeria (CBN) are sustained, Alhaji Aminu Gwadabe has said.

    Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), told the News Agency of Nigeria (NAN) on Tuesday in Lagos that the new Forex policy had eliminated frivolous demand for dollar.

    According to him, frivolous demand for dollar has been responsible for the weakness of naira.

    The ABCON chief said that CBN’s continued intervention at the Forex market would soon spell doom for speculators and currency hoarders.

    “Currency speculators and hoarders would suffer more losses as the CBN injects more dollars to the interbank market.

    “The sustained intervention by the CBN will technically take speculators out of business.

    “My expectation is that if both volumes and applicable exchange rates are reviewed for the BDC sub-sector, naira would be trading at N415 to a dollar,’’ Gwadabe said.

    The ABCON chief said that the CBN had recorded a huge success because of its new policy, adding that the naira had continued to strengthen at the parallel market, exchanging at N435 to a dollar.

    He told NAN that granting of more access to the BDCs at the International Money Transfer Services Operators (IMTSO) window would help to further strengthen naira against the dollar.

    NAN reports that the CBN has injected over 1.5 billion dollars since February when it started its intervention at the interbank market.
    The apex bank said that its aim was to bring stability to the foreign exchange market and provide easy access of foreign currencies to businesses and individuals.

    The CBN had on Monday injected additional 180 million dollars dollars since February when it started its intervention to meet bids for wholesale auction and requests for invisibles such as medicals, school fees and personal travel allowances.

     

  • Naira appreciates against dollar

    Naira appreciates against dollar

    The Naira on Tuesday appreciated against the dollar in all the segments of the forex market, the News Agency of Nigeria (NAN) reports.

    The currency gained N44.95 to exchange at N305.27 to the dollar at the interbank market after its Monday’s record of N350. 22.

    At the parallel market, the naira gained N5 to exchange at N465 from N470 it traded on Monday, while it went for N565 and N510 against the Pound Sterling and the Euro, respectively.

    Trading at the Bureau De Change (BDC) Segment saw the currency exchange at N385, the control rated of the Central Bank of Nigeria (CBN) and at N564 against the Pound Sterling and N510 for Euro.

    Assessing the market, Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said that the naira had prospects of further appreciation in the days ahead.

    He told NAN that the CBN was working with Nigerians in Diaspora to woo more remittances back home.

    According to Gwadabe, the CBN had a robust meeting with stakeholders and Nigerians in Diaspora at the weekend in London on way to boost liquidity in the foreign exchange market.

    He said that more International Money Transfer Operators (IMTOs) had indicated interest in facilitating the repatriation of remittances from abroad.