The naira continued its appreciation on the parallel market yesterday as it climbed to N468 to the dollar from N470 to the dollar the previous day, following the implementation of an arrangement that saw the intervention of Travelex in the Bureau De Change (BDC) segment of the market.
Also, the naira was calm on the interbank FX market as the spot rate of the naira closed at N304.75 to the dollar.
The Central Bank of Nigeria (CBN) and
Travelex last Friday started implementing a new arrangement whereby the
global FX dealer now sell the greenback to BDCs. The policy has seen an
increase in level of liquidity in the market.
President, Association of Bureau De
Change Operators of Nigeria (ABCON), Aminu Gwadabe, who disclosed this
yesterday, said with each of the 3,000 BDCs now get $15,000 each, with
total of $45 million will flow into the system weekly. He lauded the CBN
for authorising Travelex to take responsibility of disbursing huge
dollar inflows from the diaspora estimated at $21 billion annually to
BDCs.
He said the development, which was an
improvement from the initially approved $10,000 weekly, would deepen
dollar liquidity in the system and strengthen the naira against the
dollar.
Gwadabe, said the experience and integrity of Travelex would be key in getting the dollars down to BDCs.
He urged all ABCON members and BDC operators, as a matter of urgency, to visit the apex bank’s branches in their respective zones to update or validate their en-cashers and signatories mandate card for Travelex biometric data capturing.
He urged all ABCON members and BDC operators, as a matter of urgency, to visit the apex bank’s branches in their respective zones to update or validate their en-cashers and signatories mandate card for Travelex biometric data capturing.
Gwadabe said the Travelex biometric data
capturing would enable the BDCs access the International Money Transfer
Operators (IMTOs)/Travelex dollars window.
He said remittances have direct positive
and significant impact on consumption, investment, and demand in the
country as it could be used to address short-run output shocks, and even
long run growth. He said remittances tended to be stable and could
increase during periods of economic downturns and natural disasters.
President of ABCON commended the CBN for
reaffirming the country’s commitment to building an enabling
environment and level-playing field for international money transfer
services to Nigeria.
He said by increasing the number of IMTOs from three to 14, the CBN under the leadership of its Governor, Godwin Emefiele, would set the economy on the path of development in the medium- to long-term and also, restore integrity in the international money transfer business.
He said by increasing the number of IMTOs from three to 14, the CBN under the leadership of its Governor, Godwin Emefiele, would set the economy on the path of development in the medium- to long-term and also, restore integrity in the international money transfer business.
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