Naira Recovers At Parallel Market, Drops By 13.26% In Official Window

On Wednesday, the naira gained value, reaching N1,490 against the dollar in the parallel segment of the foreign exchange (FX) market.

The current FX rate signifies an increase of 2 percent relative to the N1,520 reported on May 27.

Currency traders in Lagos, also known bureau de change operators, quoted the buying price of the greenback at N1,460, and the selling rate at N1,490 — leaving a profit margin of N30.

At the official window, the local currency depreciated by 13.26 percent against the dollar from N1,173.88/$ on May 28 to close at N1,329.65 on Wednesday.

During trading hours, the exchange rate recorded a high of N1,506 and a low of N1,010, according to FMDQ Exchange, a platform that oversees the official FX trading in Nigeria.

The daily foreign exchange market turnover stood at $336.54 million.

On May 22, the Central Bank of Nigeria (CBN) released the approved guidelines for BDC operations in the country.

The apex bank raised the capital requirement for tier-1 BDC operators from N35 million to N2 billion, while tier-2 operators were mandated to have a capital base of N500 million.

On May 28, the Association of Bureau De Change Operators (ABCON) urged the CBN to review the minimum capital base for tier-1 operators to N500 million and tier-2 operators to N100 million.

Aminu Gwadabe, president of ABCON, said the capital requirement should be reviewed to allow for easy mergers among BDCs.

“For the N2 billion capital base — for those that want to have branches or franchise — we told them (CBN) we are proposing between N500 million and N1 billion,” he said.

Gwadabe also urged the apex bank to allow BDCs to recapitalise instead of reapplying for licences.