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Naira Sinks As CBN Slashes Dollar Supply to BDCs

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By Modupe Gbadeyanka

Fresh pressure has been mounted on the Naira following the decision of Central Bank of Nigeria (CBN) to cut down Dollar sales to Bureaux De Change (BDCs) operators in the country.

This has further depreciated Nigeria’s currency to N473 per Dollar at the parallel market.

According to Financial Vanguard investigations, the apex bank made the cut by 46 percent by selling $8,000 to each BDC through Travelex Nigeria Limited against $15,000 it usually sold per week to them.

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Speaking on the issue, Chief Executive Officer of H.J Trust BDC, Mr Harrison Owoh, disclosed that the reduction came as a surprise to the market.

Mr Owoh said this was contrary to the general expectation that the dollar sale will be increased to $20,000 per BDC.

“That is why the currency is under pressure with the rate going up.”

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Also, Chairman of the South West Zone of Association of Bureaux De Change Operators of Nigeria (ABCON), Mr Taiwo Ebenezer, said that the reduction in dollar sales was done to accommodate BDCs in other zones of the country.

“The dollar sales have been limited to BDCs in Lagos and Abuja, but ABCON recommended to CBN to find a way to accommodate BDCs in other zones. That is what the CBN has done though the reduction in supply in Lagos and Abuja has prompted the exchange rate to go up,” Mr Ebenezer told Finacial Vanguard.

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He added that the CBN will definitely consider the impact on the rates and take a decision on whether to keep it at $8,000 per BDC across board or increase the quantity sold per BDC.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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