The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, has blamed the recent depreciation of naira on the speculators’ onslaught and resistance by the banking industry.
Gwadabe said on Saturday in Lagos that the refusal of some banks to sell the invisibles such as personal and business travel allowances frustrated naira recovery.

The ABCON chief said that the CBN had recently accused the banks of frustrating its policies.

He said it was ironical that the naira started losing strength in spite of the CBN’s review of the rates from N375 to N360 to a dollar.

According to him, the naira started trading on Monday with a promising outlook for sustained strength against the dollar and other currencies, but it began to fall at the middle of the week.



“The naira ended deeper northward to close at N394 to a dollar on Friday, translating to 10 percent depreciation of what was recorded during the week,’’ Gwadabe said.

The association president said that the removal of disparity in applicable exchange rates among the BDCs, Travelex and the banks should have strengthened the nation’s currency.

The financial expert said, “CBN’s knack for last minute solution as recent development has shown, accounted for the misfortune of the naira at the foreign exchange market.’’

Gwadabe said that the battle for the soul of the naira would be won if the CBN could boost liquidity to the BDCs for the effective unification of rates.

“It is evident that the injection of liquidity to the interbank market rather than the BDC sub-sector is not effective and transparent for sustained FOREX rate convergence and unification.

“Statistics from the CBN shows that about 20 banks get 80 million dollars weekly for invisible transaction as against the 20 million dollars weekly for over 3000 CBN licensed BDCs nationwide.

“The CBN should enhance public awareness to guide end users on FOREX availability and applicable exchange rates.

“The CBN should diversify the buffers from oil proceeds to foreign investors inflows and Diaspora remittances,’’ Gwadabe said.

He urged the CBN to sponsor a bill for an act of the National Assembly for naira convertibility in West Africa, as part of the solutions to full recovery of the naira.

Gwadabe said that naira was currently a means of exchange in about 15 countries in Africa.

He urged the Federal Government to increase security surveillance at the nation’s airports and land borders to checkmate illegal foreign cash evacuation.

The naira ended the week on a negative note, eroding the 12.36 appreciation it recorded in its trading last week.

The Nigerian currency appears to be on trial again, as experts argue that winning the battle for the soul of the naira requires more than pulling the monetary policy lever.

They called for a blend of fiscal and monetary policy and indeed patriotism from all Nigerians to save the naira from further sliding.

(NAN)

Read more at http://www.herald.ng/naira-fell-despite-cbn-intervention-abcon/#rw4gDhXoFZK5c2eQ.99

Na wa o

I dedicate this first FTC of the month to the CBN.

#IStandWithNigeria. Nigeria shall be great again

Why! Why!! Why!!!

Nigerians,

People working in our banking sector are Nigerians.
Simply they are corrupt.

They will frustrate this incompetent government lead by President Buhari.

But the end sufferers are Masses of this nation.


Please wake up, let all Nigeria join politics to send these people packing.

That is first antidote for Nigeria survive

Rule of Law.

Tell us how eo make the Naira rise again

Discrepancies in the banking sectors but that notwithstanding, do what you have to do to fix this menace. And for your information Mr. CBN, there's no patriotic Nigerian and when una been the use policy formulation upandan the hoard dollars una forget us. Na tribalism full we country Mr. CBN. Abeg continue the fight - I dey behind you

OK nah

Too much analysis and excuses. Unless the Naira equals the dollars, I have nothing to say

In Nigeria, we'd always find a man-made reason for everything, even if it's just basic economic principles coming into play.

Slowly we won't know what hit us
700-1000 loading

lol

Gwadabe is protecting the interest of the BDC's. Who helps the poor masses in dollar accessing, the banks or BBC's?

Nonsense. All he said has no correlation to the sudden naira change.

This naira self them swear for am?

Gain 0.8% today then e go come loose 10% later.

Now I know why I need a financial adviser, nothing written up there made sense to me.

Naija matter don tire me

Excuses!!!

We just don't earn enough FX for both the NEEDS & WANTS of this nation!!!! What is readily & easily available is never scarce nor costly!!! Increase exports to earn more! Every other thing is just mere wishful thinking!!

Abeg make e reach 500 back - after all dem no reduce prices of stuffs for market

It's very understandable, everything about Bubu is failure.
Change Bubu and everything will change.

So banks are the new cabals

rushed to comment only to read the post..nothing meaningful to say.. to all those under me sorry o

Nawa ooo... Naija and greed.

CBN should kuku sell to the masses directly. Banks and BDC ain't loyal

Sad

If the CBN can followup appropriately on commercial banks and ensure that BTAs are sold at the right prices to individuals with genuine interests, the prices will converge. BDCs are speculators and will hoard and hike FOREX. Monitor the out local banks. They are the one's inflating FOREX and selling to BDCs at a markedup price. OR better still, eliminate BDCs from the country!! Alternatively, cut down unecessary imports by adding more items on the import prohibitive list, promote the local industry by making business friendly policies, and providing forex to local manufacturers at a discounted price. Unecessary forex demand is stressing the naira!

deflover:
Slowly we won't know what hit us 700-1000 loading

please carry your negative vibes go Ghana.

Okay oo

As long as there are vultures frustrating Osinbajo's efforts, injuction of fx wud remain Unsustainable .

Banks r selling to only their cronies. Man know man.

signature2012:
Eliminate BDC from the country and see the Naira appreciate.

that may be the solution to a problem that leads to another problem

gincmedia:
Abeg make e reach 500 back - after all dem no reduce prices of stuffs for market

You know how wicked nigerians be. If e enter 500 back things for market go increase again.

deflover:
Slowly we won't know what hit us
700-1000 loading

your pessisism is uglier than this photo