Naira Strengthened to dollar at parallel market(See New Rate 18/10/16)

The Naira on Tuesday, October 18, recorded more gain against the dollar as it now trades at N453/$1 in the black market. This is higher than the N455/$1 it was on Monday, October 17.



I think this a good news though might not have a significance on the entire economy yet but at least our currency is ganning more and I think the time it start missing Value it didn’t happen in just one day let’s hope for more positive news about our currency.

According to economists, the steady gains recorded by the nation’s currency on the unofficial segment of the market in the past few days, can be attributed to improved dollar liquidity to the Bureau De Change (BDC) arm of the market.
NAIJ.com recalls that the Central Bank of Nigeria had last week appointed Travelex and FirstBank Nigeria Limited as the only two institutions responsible for the sale of the greenback to BDCs, in its bid to ensure improved dollar supply to the foreign currency traders.

This followed the suspension of 19 other commercial banks from same role as a result of their failure to fully comply with a directive, which required commercial banks that act as agents of international money transfer operators to always sell foreign currency remittances to licensed BDC operators.

However, Alhaji Aminu Gwadabe, president of the Association of Bureau De Change of Nigeria (ABCON), has welcomed the move by the central bank, saying it would help strengthen the naira and improve dollar liquidity in the market.

He said: “If you check, since Travelex started selling to BDCs, speculation has reduced in the market and the naira is on the path of recover.”

The Naira has also remained steady at 307.77/dollar on the official interbank window.

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Naira Recovers Again!! On Parallel Market 12/10/2016 – See New Rate

The naira has continued to recover tremendously following the introduction of Travelex by the apex bank in Nigeria – CBN.

The Nigerian Naira appreciated on the parallel market on Tuesday, following the introduction of Travelex to the Bureau De Change segment last week.

The local currency rose N2 to N468 against the dollar from N470 it was traded on Monday. While, on the interbank market the Naira closed at N304.75 to the greenback.

Last week, Travelex commenced the sales of dollar to Bureau De Change operators in the country, and immediately started selling directly to travellers to further boost liquidity in the market and aid economic activities.

Samed Olukoya, a foreign exchange research analyst at Investors King Limited, said “If the CBN and Travelex can sustain the current arrangement it, will help fight speculation and gradually prop up the Naira value against the dollar.”

While, other experts have said the Naira was being battered by market speculators and that the N500 exchange rate to the dollar was not the true value of the local currency.

However, Aminu Gwadabe, the president of the Association of Bureau De Change Operators, said that the authority still have to review the selling price of the dollars to the Bureau De Change operators to encourage Nigerians in Diaspora, whose remittances was being sold to the Bureau De Change operators.

He further stated that the new improvement in the Naira value would discourage the patronage of unlicensed parallel market traders and likely impact the progress made thus far.

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