The nation’s currency on Wednesday reversed its losses to exchanging at N364 per U.S dollar from N367/$ traded last week at the black market.
Bureau De Change Operators (BDCs) across the country accessed dollar from the Central Bank of Nigeria (CBN) on Wednesday.
The BDCs in Lagos alone access a total of $32 million from the CBN. The breakdown of the auction shows that 1,600 out of over 3,000 BDCs accessed $20,000 each.
However, the BDCs in Lagos experienced delay in accessing dollar from the CBN. At about 6.30 pm the BDCs were still waiting for the disbursement. The CBN eventually started disbursing around 7pm.
Aminu Gwadabe, president, Association of Bureaux De Change Operators of Nigeria (ABCON) said they usually accessed dollar from the International Money Transfer Operators (IMTOs) by 12 noon.
“Due to logistics problem and the delays that is why we are saying the CBN should reduce the weekly allocation of foreign exchange to days”, Gwadabe told BusinessDay on Wednesday. “Where are we going to get customer to sell to by this time”, Gwadabe queried.
The CBN had said all BDCs shall access forex from CBN on Mondays, Wednesdays and Fridays, saying it is compulsory that all BDCs access forex at least three times weekly.
“Any BDC that fails to access forex window at least three times weekly shall have its license reviewed by the CBN. Compliance is compulsory”, a statement signed by Isaac Okorafor, CBN spokesman reads.
The CBN also mandated all deposit money banks to buy and sell foreign exchange to travelers (both customers and non-customers upon presentation of relevant, valid travel documents such as visa and ticket over the counter.
The move is to ensure that eligible travelers are able to access foreign exchange and make liquidity available in the market.
However, naira depreciated by 0.12 at the investors and exporters forex window, as it closed at N362.02k on Wednesday compared to N361.57 closed on Monday before the holiday, data from FMDQ show.
Gwadabe told BusinessDay on Tuesday that the association will by end of the week or next week have a meeting with the CBN over the new directive. “They are looking into it”, Gwadabe said.
As a way of ensuring compliance, Godwin Emefiele, Governor of CBN on Monday visited some deposit money banks including First Bank, UBA and Zenith banks offices in Abuja to monitor sales of foreign currencies to customers.
“The essence of us being here is to make sure that the banks are able to service not just their customers, but also those who are not their customers, particularly those who want to travel outside the country.
“I want to seize this opportunity to let everybody know that there is dollar availability. If you want to travel, go to a bank. It doesn’t have to be your bank”, Emefiele said.
BDCs had rejected the CBN’s directive mandating operators to make three forex biddings and purchases on weekly basis. The group also insists that the regulator review BDC’s dollar purchase rate to align with rate commercial banks’ buying rate.
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