A Bureau De Change (BDC) operator, Mr Harrison Owoh, has predicted that the Naira might appreciate to N300 against the dollar within a week.
Owoh said the CBN’s directive to banks to sell $30,000 to BDCs weekly could be responsible for the imminent gain against the dollar. In an interview in Lagos, the Managing Director, H J Trust and Investment Ltd., said seven banks had already done documentation for customers.
According to him, the ongoing documentation process was why the Naira had not appreciated immediately. Owoh said once the banks were through with the documentation, the Naira would begin to appreciate against the dollar. It was recalled that the CBN had fortnight ago, announced additional regulatory measures aimed at improving dollar liquidity in the economy.
Specifically, the apex bank directed authorised dealers to sell foreign currency cash to BDCs, subject to a maximum $30,000 per BDC per week. In turn, each BDC was required to nominate only one preferred authorised dealer through which it would purchase its weekly foreign exchange.
The authorised dealers’ selling rate to the BDC was stipulated at its purchase rate from its approved International Money Transfer Operator (IMTO). Also, the BDCs were required to sell foreign exchange cash to end users at its purchased rate and a maximum margin of two per cent. Last week, foreign exchange market witnessed sustained depreciation of the Naira against the dollar in all segments as foreign currency supply remained inadequate.