Naira falls across FX markets, hits N445/$ in parallel market

The Naira Monday depreciated across segments of the foreign exchange market following increased demand for dollar to pay school fees abroad, coupled with speculative activities.
The nation’s currency fell to a record low of N445 against the US dollar at both the Bureaux De Change segment of foreign exchange market and parallel market. It lost N5.00k or 1.14 percent compared to N442.00k closed on Friday last week at the parallel market. It also lost N6.00k or 1.36 percent as against N439 on Friday last week at the BDC segment.
At the inter-bank foreign exchange market, the local currency weakened against the dollar by N0,58k to close at N308.37k yesterday. This represents 0.19 percent compared to N307.79k closed on Friday last week, data from FMDQ showed.
BusinessDay gathered that deposit money banks have not sold dollar to BDCs for the past two weeks, adding to the pressure on the currency.
Consequently, the BDCs are considering partnership with Travelex , , an international money transfer organisation for dollar sales.
Aminu Gwadabe, acting president, Association of Bureaux De Change Operators of Nigeria (ABCON) told BusinessDay that the pressure on naira will ease if travelex buys from the banks and distribute to about 3,000 BDCs across the country.
He said the Central Bank of Nigeria (CBN) is in agreement with the partnership, adding that before the weekends, “we should be getting dollar from travelex”.
Gwadabe said the pilot phase of the partnership will begin in Lagos, and later on extended to Kano, Port Harcourt, Abuja and Enugu among others.
The CBN had in circular, signed by Gotring W. D, acting director, trade and exchange department, in July, directed authorized dealers who are agents of approved international money transfers operators to sell foreign currency accruing from inward money remittances to licensed BDCs with immediate effect.