NAFEX gains, record $166.75m as Naira steadies against major currencies
Motolani Oseni
The Nigerian Autonomous Foreign Exchange () widow, rebounded at the close of Wednesday trading to record a total turnover of $166.75, representing the highest during the week, while the local currency, Naira, steadied against the three major foreign currencies, Dollar, Pound Sterling and Euro, Daily times finding has revealed.
The NAFEX, had declared total volume of $302.49 million on Monday and Tuesday, but comparing the Tuesday’s turnover of $146.06m from Wednesday’s $166.75m, it showed that the special forex window strengthened by a whopping $20.69m, even though the total traded for three days was weaker to $326.03 exchanged last Thursday.
However, the Importer and Exporters forex window, opened yesterday trading activities at 359.68 to the US Dollar, which was stronger by 0.06 per cent, while compared to 359.90 sold on Tuesday but lower than 359.61 recorded on Monday.
Therefore, the Naira, at the parallel segment of the foreign exchange market, stood steady at 363 to the Dollar, the same rate it has been selling in the recent past weeks, while unchanged at 475 against pound and 425 per Euro.
In this direction, the Naira, at the official forex market sustained depreciated rate of 305.70 to the dollar, the same price the iw was seen against the Greenberg on Tuesday, even though it was weaker than 305.65 exchanged on Monday and 305.60 traded last Wednesday.
Meanwhile, in a move to achieve exchange rate convergence and stability, the Central Bank of Nigeria (CBN) has injected $2.64 billion in
22 weeks to cushion the dollar crisis on 3000 Bureau De Change (BDC) operators in the country.
The CBN in April 14, 2017 had resolved to raise foreign exchange supply to BDC operators to $40,000 weekly from the $20,000 weekly it sold to the each currency dealers.
The estimated $2.64 billion supply to BDCs operators by ended September 30, 2017, though the CBN continues its intervention to the operators in October.
A source hinted our correspondent that since the announcement in April 14, the apex has supplied each 3,000 BDC operators $40,000 on weekly basis.
The President, Association of Bureaux De Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe, said limited access to foreign exchange is impacting negatively on its association despite the CBN’s weekly intervention.
He noted that the multiple rates at which banks buy foreign exchange at N358/Dollar while BDCs operators buy at N360/Dollar from the same CBN window is also another challenging facing the operators.
The CBN was reported to have met with BDC operators to “correct” the conflicting exchange rates.
Gwadabe, disclosed further that banks are obnoxious charging its members and it is affecting BDCs operators in Nigeria.
He admitted that the prevalence of unregistered operators is another issue, stressing that public preference of open market ( parallel market) is killing the BDC business.
The development, BDC dealers said, forced some of the operators to seek means of selling foreign currencies in their possession, especially dollars, pounds and Euros at stipulated rates.
