The naira Wednesday appreciated by N12 to N385 against the dollar in the parallel market due to $62 million dollar supply to bureaux de change segment by the Central Bank of Nigeria (CBN).
Vanguard survey revealed that the CBN yesterday sold $20,000 to 3,170 BDCs, amounting to $62 million supply into the segment.
As a result, the parallel market exchange rate dropped from average of N397 per dollar on Tuesday to N385 per dollar at the close of business yesterday.
Confirming this development, Managing Director/Chief Executive, H.J Trust BDC, Mr. Harrison Owoh said: “The appreciation shows the importance of BDCs in the foreign exchange market. Everybody is happy about the appreciation, and we expect it to continue”.
Also speaking, President, Association of Bureaux De change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe said that the increased supply of dollars to BDCs is rattling the market, and the rates are tumbling. We have already funded our accounts to purchase another $20,000 from CBN before the end of the week. So we expect the rate to further go down.
The CBN conducts bi-weekly forex sale to BDCs. Previously it sold $10,000 to each BDC per session, translating to $20,000. However last week, the CBN increased dollar sale per session to $20,000 for each BDC, hence $40,000 per BDC per week.
Meanwhile the nation’s external reserve has risen by $260 million to $30.6 billion since the beginning of this month.
According to the CBN, the reserve rose from $30.3 billion at the end of March to $30.6 billion on Tuesday. Consequently, the reserve has risen by $4.8 billion since the beginning of the year.