‘Naira may appreciate to N300 per dollar within 7 days’

‘Naira may appreciate to N300 per dollar within 7 days’
August 15 18:05 2016

A Bureau De Change (BDC) operator,
Harrison Owoh, has predicted that the Naira
might appreciate to N300 against the dollar within seven days.
Owoh said the CBN’s directive to banks to sell $30,000
to BDCs weekly could be responsible for the imminent
gain against the dollar.

In an interview in Lagos, the Managing Director, H J
Trust and Investment Ltd., said seven banks had
 already done documentation for customers.
 According to him, the ongoing documentation process
was why the Naira had not appreciated immediately.
Owoh said once the banks were through with the
documentation, the Naira would begin to appreciate
against the dollar.

NAN recalls that the CBN had fortnight ago, announced
additional regulatory measures aimed at improving
dollar liquidity in the economy.
The apex bank directed authorised dealers
to sell foreign currency cash to BDCs, subject to a
maximum $30,000 per BDC per week.
In turn, each BDC was required to nominate only one
preferred authorised dealer through which it would
purchase its weekly foreign exchange.

The authorised dealers’ selling rate to the BDC was
stipulated at its purchase rate from its approved
International Money Transfer Operator (IMTO).
Also, the BDCs were required to sell foreign exchange
cash to end users at its purchased rate and a
maximum margin of two per cent.
Last week, foreign exchange market witnessed
sustained depreciation of the Naira against the dollar in
all segments as foreign currency supply remained
inadequate.

NAN