*As CBN cuts supply to BDCs by 66%

By Babajide Komolafe

The Naira Wednesday depreciated further to N270 per dollar at the parallel market, following reduction of dollar sales to bureaux de change (BDCs) by the Central Bank of Nigeria (CBN).



Vanguard Investigation revealed that from N260 per dollar at the close of business on Tuesday, the parallel market exchange rate rose sharply to N270 per dollar in Lagos, indicating N10 depreciation.

But in Abuja, the parallel market exchange rate rose from N262 per dollar to close at N273 per dollar, indicating N11 depreciation.

BDC operators, who confirmed this development to Vanguard, said that the sharp depreciation was due to further reduction in the weekly dollar sales by the CBN.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe to Vanguard that though the CBN increase the number of BDCs it sold dollars to from 1,170 last week to 2,270 this week, it however reduced the amount of dollars sold to each BDC by 60 percent from $30,000 to $10,000.

According to Mr. Harrison Owoh, Chief Executive Officer, H.J Trust BDC, the decision of the CBN aggravated the demand situation in the market.

“There is huge volume of unsatisfied demand in the market. We had to turn down lots of request for dollars because of there is no dollars to sell to them”, he told Vanguard.
An Abuja based BDC operator, who spoke on condition of anonymity told Vanguard, “The dollar is selling at N273 in Abuja this evening. It was N262 in the morning. We are surprised at the pace of depreciation, because we can’t explain why it just went up by such margin in one day”.
Commenting on this development, Director, Corporate Communications, Central Bank of Nigeria (CBN), Ibrahim Mu’azu said that the reduction in dollar sales to BDCs is part of the demand management of the CBN in the foreign exchange market. He said that the depreciation of the naira to N270 per dollar is a speculative reaction to the development.

“The rate is not sustainable”, he said. “This is because there are still other windows for end users to buy dollars at lower rate. They can buy dollars at the official rate from the deposit money banks, and from Travelex inside the airport. So by the time people know about these alternatives, the reaction in the parallel market, and the exchange rate will calm down.”

Further investigations reveal that the naira also depreciated heavily against the British Pounds. From N365 per Pounds at the close of business last week, the parallel market exchange rate rose sharply to N385 per Pounds at the close of business yesterday.

In addition to the reduction in dollar sales by CBN, foreign exchange supply from autonomous sources is thinning due to hording. “People are hording their dollars in anticipation of further depreciation of the naira, while some are demanding higher exchange rate before they sell,” said the Abuja based BDC operator.

The anticipation of further depreciation is been driven by speculations that the reduction in dollar sales by the CBN might be followed by outright cancellation of the weekly dollar sales programme which was introduced in 2006. “The naira will hit N300 per dollar, if the CBN cancels the weekly dollar sales, projected the Abuja BDC operator.”

Recall that last week the CBN introduced revised guidelines for BDCs which tightened regulation of BDC operations.

Among other things the apex bank banned BDCs from having branch directing them to close all their branches within 90 days.

The new guidelines also banned BDCs from having business relationship with street currency hawkers, saying it would revoke the operating license of any BDC with business relationship with street currency hawkers.

Source: http://www.nairausd.com/2015/12/naira-depreciates-to-n270dollar-in.html?m=1


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Kai Buhari

ogb5:
Kai Buhari

Guy you toooo much.

seriously getting bad for Nigeria economy.....

#change indeed.

Wonderboy1:
seriously getting bad for Nigeria economy.....


#change indeed.

Welcome to change

*faints *

die baba die die die die die die die die die die die die die Insha'Allah amin

GEJ should be impeached, he have destroy our economy. Sai Baba

It is well with Nigeria

Electing Buhari is one of the worst mistakes in Nigeria's history, still some zombies come online to tell you things are moving fine, ask them to pinpoint what Buhari has done since May 29, they will remind you of ''PDP 16 years misrule'' as if most of APC members were not part of PDP.

1 dollar=270 naira, what a change.

next we hear is hw much GEJ stole again ............baba time waits for no one..take the bold steps now

i no longer complain about this, every time i hear of the fall of Naira, i just know that Nigeria is reaping the fruits of our mistakes, mistakes of gullibility, mistakes of assumptions, mistake of ethnicity, mistake of religious affiliation, our government system is just an example of failure, our elected leaders sees that position as their time to shine and dash out, responsible office to their party supporters and political friends, be it who whether qualified or not. WE ALL WANT TO MAKE MONEY FROM NIGERIA, the leaders have nothing more to offer, just waiting for the day it will all end, as for me, i have only to get what i can a leave this country for them.. until we all reject greed and corruption, we are always going to be at lost in the future. i wonder what Naira to dollar will be in 2022, i foresee 1$ = #500.

Bull.ari has succeeded in DESTROYING NIGERIA.

#PATAPATA.

This is getting out of hand!

may God help his children in Nigeria to survive the future hardship awaiting Nigerians

Jonathan should cough as much as possible o3 what he has hidden.

Nigerian Naira officially taking over from Zimbabwe dollar

Ferdinandu:
Nigerian Naira officially taking over from Zimbabwe dollar

if I send $ now to Nigeria ,it's going to give me much Naira,but yet, I am not happy how Naira have been murdered in a cold blood,untimely.
blame those northern oil well owners that have milked Nigerian resources dry.
leave the shores of Africa and see how their children are lavishing money with their luxirious life styles.
youths in Nigeria are there praising and dying for those wicked politicians, while their kids are wasting their collective treasury abroad. what a shame?

.

Dont worry. Buhari if pighting kworuption.

These guys dont know that you dont just create news to divert people's attention on what is really happening. The next news you will hear is that GEJ stole 200 billion dollars, that's why naira is depreciating.

Instead of assembling the economic team and asking serious questions on what is happening and the way forward, these guys are using media to rule and diver attention.

No problem. I pity these youths on nairaland who have no job, fighting over first to comment, biafra protest, shites protest, etc, instead speaking out and holding these leaders to account

Shebina Dollar Cost No Be Garri..Tank God

APC is scam...
Are they not the same refineries that APC told us
(bearly 1 month he was handed over; b4 the
appointment of his saints [sic] cabinet) to start cheering
because PMB's body language has made them to start
functioning to the tone of over 60% of their install
capacity and that 100% is assured by December. Among
which is the failed
Kaduna refinery which gets its crude oil through pipeline
thousands of miles from Niger delta creeks
He therefore inferred that since Liar Moh'd can confirm
that his body language can perform wonders in all
sectors including Power, oil and gas...that having noise
makers [sic] ministers will just be mere formalities.
On the other new Fashola has opined that Nigerian
would get 24/7 power supply if they can afford his
proposed tariff hike. Yet U have not attracted any single
new investment in power sector since APC 7 months
rein. Production is at abt 5000Mw while we needed at
least 40000MW to achieve what Ur saying
Why has God decided to punish Nigerians with APC?

1.U want to toll federal roads that was free

2. U want to increase electricity bill

3. U want to increase fuel pump price by N10; when
PDP removed N10 close to election U said it was
political move that price of crude oil in int. market
should crash fuel to N40/L

4. U want to remove subsidy on petroleum products

5. U want to reduce minimum wage

6. U can't pay Federal and state workers promptly

7. U can't regulate the exchange rate $1 = N260

8. U clamping down on business men and drivers of
economy, U have denied importer forex

9. U are violating court rulings, and human rights, witch
hunting the opposition parties

10. Ur a plague, Ur evil

davidante27:
What exactly do you expect the new president to do?
Goodluck Jonathan stole up to $50 billion dollars while his aids and others in his administration embezzled a total of $200 billion dollars.

Get out joor, this is getting stale. People are complaining bitterly about the bad state of the economy under Buhari and you're here typing nonsense .
Did Nigerians voted for Buhari to always remind them of how bad Jonathan's administration was?

emmyclassic:
APC is scam... Are they not the same refineries that APC told us (bearly 1 month he was handed over; b4 the appointment of his saints [sic] cabinet) to start cheering because PMB's body language has made them to start functioning to the tone of over 60% of their install capacity and that 100% is assured by December. Among which is the failed Kaduna refinery which gets its crude oil through pipeline thousands of miles from Niger delta creeks He therefore inferred that since Liar Moh'd can confirm that his body language can perform wonders in all sectors including Power, oil and gas...that having noise makers [sic] ministers will just be mere formalities. On the other new Fashola has opined that Nigerian would get 24/7 power supply if they can afford his proposed tariff hike. Yet U have not attracted any single new investment in power sector since APC 7 months rein. Production is at abt 5000Mw while we needed at least 40000MW to achieve what Ur saying Why has God decided to punish Nigerians with APC?
1.U want to toll federal roads that was free
2. U want to increase electricity bill
3. U want to increase fuel pump price by N10; when PDP removed N10 close to election U said it was political move that price of crude oil in int. market should crash fuel to N40/L
4. U want to remove subsidy on petroleum products
5. U want to reduce minimum wage
6. U can't pay Federal and state workers promptly
7. U can't regulate the exchange rate $1 = N260
8. U clamping down on business men and drivers of economy, U have denied importer forex
9. U are violating court rulings, and human rights, witch hunting the opposition parties
10. Ur a plague, Ur evil

hahaha... still GEJ is the clueless man that destroyed Nigeria

Omenkata:
*faints *

die baba die die die die die die die die die die die die die Insha'Allah amin

LoL

So this naira never discover oil yet?

Breeze of change

sai baba

talktimi:
GEJ should be impeached, he have destroy our economy. Sai Baba

Are you still at sleep or in coma

olaboy33:
next we hear is hw much GEJ stole again ............baba time waits for no one..take the bold steps now

Na true yarn you yarn

ifyan:


Are you still at sleep or in coma

let me ask Ifa

talktimi:
let me ask Ifa

From the authority bestow on you are permitted