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Bureaux De Change At Risk As Naira Gains More Muscle - Business - Nairaland

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Bureaux De Change At Risk As Naira Gains More Muscle by odiks: 5:42am On Mar 27, 2017
Business seems bad for Bureaux De Change (BDCs) — no thanks to the naira’s new strength that has hit them with heavy losses.

The naira has strengthened below N381 to the dollar, the rate at which BDCs buy International Money Transfer Operators (IMTOS) cash from the Central Bank of Nigeria (CBN).

The naira exchanged at N375 to the dollar in the parallel market at the weekend.

It is tipped to gain more within the week as the CBN sustains dollar interventions in the interbank market.


About $1.5 billion has been injected into the interbank market since February when the interventions started.

Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe, who hinted of some BDCs likely closure after losing N130 million within the week, said the losses came from the disparity in applicable exchange rates among players in the market. He, therefore, called for rates harmonisation to give all players a level playing field.

According to him, the public has refused to buy foreign exchange from BDCs for invisibles, such as medicals, school fees, and personal and business travel allowances, at a rate above N375 to the dollar.

Commercial banks are selling the dollar for invisibles at N375. The parallel market rate closed at N380 last week. The BDCs, Gwadabe said, were at the receiving end of the market because they bought dollars at N381 and sold at N399, which is far higher than even the parallel market rate.

“All the banks’ selling rates are higher than even the purchasing rates of BDCs, let alone our selling rates. No one is presently buying from the BDCs. I managed to sell only $4,000 last week at N385, how are we going to survive?”, he asked.

“The development has been communicated to the CBN and relevant agencies for intervention and the CBN is giving it its attention. If the scenario is not reversed immediately, the CBN licensed BDCs of over 3,000 with 30,000 workers will be technically edged out of the market,” he said.


Continuing, Gwadabe urged the CBN to provide a level-playing field for all operators, because they are all operating within same market, and selling the same product.

Gwadabe said once the BDCs are no longer in the foreign exchange business, currency speculators will take over the market and that will not be good for the naira.

Stakeholders hope that the sustenance of the CBN’s efforts at the interbank market will further drive down the value of the dollar.

The naira has appreciated by 13 per cent in the parallel market in the last one week. The currency traded at N440 last Monday. It closed at N380 to the dollar at the weekend.

Experts have praised the CBN for its intervention at the foreign exchange market. They urged the apex bank to eliminate the multiple rates in the market.

As the naira continues to appreciate, experts say it is necessary for the CBN to adjust applicable rates in various segments of the market in the overall interest of the economy.

The CBN said yesterday that the dollar would be weakening further this week as it plans yet another round of interventions in the interbank market. It plans to pump in more dollars into the interbank market to meet the demands of wholesale and retail customers as well as strengthen the value of the naira against other international currencies.

The planned move by the CBN, sources say, will further firm up the naira against other currencies as the exchange rates of the greenback and the United Kingdom Pound Sterling continue to move southwards.

The Euro and the Pound exchanged at the parallel market at the weekend at N405 and N475. The figures will further nosedive this week, according to experts.

The Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, confirmed the plan to inject more foreign exchange into the market.

http://thenationonlineng.net/bureaux-de-change-risk-naira-gains-muscle/

2 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by odiks: 5:49am On Mar 27, 2017
Imagine.... BDC's are now crying that business is bad. What of those days they were calling the shots? Their rates were quoted as if it was the official rate. My advice to CBN is for them to continue and sustain the intervention so that the BDC's will be forced to bring out the dollars they stockpiled and even sell them at a loss.

192 Likes 17 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Akwasi(m): 5:50am On Mar 27, 2017
Its been a sweet turnaround.

Good citizens 1: Greedy bastards 0

231 Likes 17 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by madridguy(m): 5:52am On Mar 27, 2017
Good development. I hope Naira will continue waxing stronger till every evil BDC operator go back to their villages for farming work grin

Good morning Nigeria.

157 Likes 10 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Sabadon(m): 5:54am On Mar 27, 2017
positive development I hope it maintains a steady gain n well sustained......
Naira shall b great again

22 Likes 2 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Atiku2019: 5:54am On Mar 27, 2017
I Love This cool

5 Likes 1 Share

Re: Bureaux De Change At Risk As Naira Gains More Muscle by omenkaLives(m): 6:01am On Mar 27, 2017
Someone call that scum gobbling prehistoric Senegalese monument called Reno O'mockery to come read this and tell Nigerians whom to blame. angry

59 Likes 7 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by iambijo(m): 6:05am On Mar 27, 2017
This is fantastic
Re: Bureaux De Change At Risk As Naira Gains More Muscle by firstking01(m): 6:11am On Mar 27, 2017
madridguy:
Good development. I hope Naira will continue waxing stronger till every evil BDC operator go back to their villages for farming work grin

Good morning Nigeria.
He be like say you dey sleep for this nairaland

3 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by firstking01(m): 6:12am On Mar 27, 2017
It has better gained more strengthundecided…all thanks to PYO.

10 Likes 1 Share

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Amberon: 6:13am On Mar 27, 2017
Good
Re: Bureaux De Change At Risk As Naira Gains More Muscle by Teacher1776(m): 6:14am On Mar 27, 2017
So BDC is now crying? The cabals are now showing their true faces! Who did it report to when it was making bogus profits when it wickedly jumped from 450 to 500 per dollar?
Aminu or whatever you call yourself, if you can't cope, please close your shop. The entire country cannot continue to suffer just to satisfy your greed.

97 Likes 6 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by kahal29: 6:16am On Mar 27, 2017
Teacher1776:
So BDC is now crying? The cabals are now showing their true faces! Who did it report to when it was making bogus profits when it wickedly jumped from 450 to 500 per dollar?
Aminu or whatever you call yourself, if you can't cope, please close your shop. The entire country cannot continue to suffer just to satisfy your greed.

Gbam

58 Likes 3 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by calddon(m): 6:17am On Mar 27, 2017
I hope d BDCs dont form a cabal to influence the depreciation of our naira.

5 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by madridguy(m): 6:18am On Mar 27, 2017
I'm too addicted to NL my broda.

firstking01:
He be like say you dey sleep for this nairaland

1 Like

Re: Bureaux De Change At Risk As Naira Gains More Muscle by blackpanda: 6:18am On Mar 27, 2017
I don't get why they are complaining. This is d business you entered into. When you were making exorbitant profits nobody complained. So why complain about the risks? Aren't BDCs insured??

45 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by vedaxcool(m): 6:20am On Mar 27, 2017
Teacher1776:
So BDC is now crying? The cabals are now showing their true faces! Who did it report to when it was making bogus profits when it wickedly jumped from 450 to 500 per dollar?
Aminu or whatever you call yourself, if you can't cope, please close your shop. The entire country cannot continue to suffer just to satisfy your greed.

Aminu should try his luck in Agriculture instead. grin

26 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by firstking01(m): 6:20am On Mar 27, 2017
madridguy:
I'm too addicted to NL my broda.
Hehehehe, i love your honesty.
Re: Bureaux De Change At Risk As Naira Gains More Muscle by kahal29: 6:20am On Mar 27, 2017
madridguy:
Good development. I hope Naira will continue waxing stronger till every evil BDC operator go back to their villages for farming work grin

Good morning Nigeria.

A big AMEN to this beautiful prayer of yours. The evil BDC should be forced out of the market so that they will close shop and go back to their villages.

25 Likes 1 Share

Re: Bureaux De Change At Risk As Naira Gains More Muscle by kahal29: 6:21am On Mar 27, 2017
vedaxcool:


Aminu should try his luck in Agriculture instead. grin


I concur

16 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by meezynetwork(m): 6:23am On Mar 27, 2017
Good stuff, good stuff
Re: Bureaux De Change At Risk As Naira Gains More Muscle by kahal29: 6:24am On Mar 27, 2017
blackpanda:
I don't get why they are complaining. This is d business you entered into. When you were making exorbitant profits nobody complained. So why complain about the risks? Aren't BDCs insured??

I tire for them Oooo

5 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by modath(f): 6:25am On Mar 27, 2017
Business meets politics.... Time unravels all things... Like belle, 9mths go reach one day. smiley

4 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by okosodo: 6:35am On Mar 27, 2017
Buhari made the cabals powerful by giving them enormous power, osinbajo just simply removed the power from them while buhari was away

20 Likes 2 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by jazinogold(m): 6:46am On Mar 27, 2017
Good job...I pray oil price soar up so they can sustain this injection! The BDC where the cause of the dollar scarcity!

CBN rite now b like.... talk to the ass

11 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by DIKEnaWAR: 6:51am On Mar 27, 2017
This Gwadebe of a man is a f00l and has no one to tell him. Eez like he wants to be unfortunate?

How can 3,000 licenced BDC operators with a 30,000 employee capacity hold over 180,000,000 Nigerians and the economy to ransom? Do they not know that the high cost of living is attributable to the exchange rate, since we are non producing and a consumer, import loving country? This Gwadebe and his ilk should be declared enemies of the country, charged for treasonable felony and tied to a stake and shot. grin undecided How I miss Gen Sani Abacha, my good friend. He'd have done exactly as I said.


Baskad BDC operators! Let them go and farm if they have no other business.

31 Likes 1 Share

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Boleyndynasty2(f): 6:54am On Mar 27, 2017
They should start another business, when they were busy hoarding money and hoping for an increase they didn't believe a day like ds will come tongue. Please our sweet Naira, come down to N300 b4 the end of the week kiss

23 Likes

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Nobody: 6:54am On Mar 27, 2017
Who did they tell when they where making huge profits from the Hike

9 Likes 2 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by DIKEnaWAR: 6:56am On Mar 27, 2017
omenkaLives:
Someone call that scum gobbling prehistoric Senegalese monument called Reno O'mockery to come read this and tell Nigerians whom to blame. angry



Buhari caused the recession and inflation with his stvpid policy. This is exactly what he did in 1984 that put the country through hardship. He has decided to back down from it, seeing the success recorded by Osinbajo in reversing the policy, in his absence.


Think with your brain , even if Buhari has bought your conscience with the 250k he pays you people at the BMC.

21 Likes 2 Shares

Re: Bureaux De Change At Risk As Naira Gains More Muscle by Exponental(m): 7:28am On Mar 27, 2017
watching.,
Re: Bureaux De Change At Risk As Naira Gains More Muscle by KINGwax007(m): 7:28am On Mar 27, 2017
I dey wait people wey never pass economics for waec to come dey analysis the situation. Especially how they knw say naira just dey go carnival with the new gain, and how e go soon come back home.

Bad Belles

9 Likes 1 Share

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