Naira’s value depreciates again

nigeria currency naira

Naira, which has been rising since last week, nosedived Tuesday, losing N13 each at the BDC and parallel market segments, BusinessDay investigations show.

Consequently, it closed at N230/$ compared with N217/$ at the parallel market and N228/$ as against N215/$ at the BDC segment.

At the inter-bank market, the local currency slightly depreciated in value by N0.07k/$ or 0.04 percent, as it closed at N198.36k/$ from N198.29k/$ the previous day, according to data obtained from Financial Markets Dealers Quotations (FMDQ).

This is coming on the heels of extension of the enrolment deadline to the Bureau De Change (BDC) operators of their customers for the Bank Verification Number (BVN).

Confirming the development on phone last night, Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), said that naira traded at N230 against N215 and N210 the previous day. He said the naira depreciation was not influenced by market reality but a kind of ‘backfire’ as market forces drove foreign exchange.

But a circular from the CBN, which was signed by Kevin Amugo, director, financial policy and regulation department, stated that all licensed BDCs were required to provide the BVN of all their director before August 15, 2015, as failure might affect their continued participation in the foreign exchange market.

“We believe the August deadline is not attainable as customers have not been fully trained in the BVN exercise. We hope this is going to be extended,” Gwadabe told BusinessDay.

He disclosed that the association had written to the CBN requesting an extension of deadline but the CBN was yet to respond.

Consequently, the apex bank has since Monday engaged BDC operators and their customers on capacity building on how to enroll for and use the BVN number.

As a result of the training programme, the BDCs’ foreign exchange bidding, which usually takes place every Wednesday, has been postponed to Thursday by the CBN.

A text message going round among the BDCs to this effect reads: “To all BDCs, please be informed that tomorrow bid collection has been rescheduled to Thursday, August 6, 2015. Note: payment start 8am and ends 10am.” ABCON – Association of Bureau De Change Operators of Nigeria. is your one-stop online news magazine blog. We report credible information as they happen. Follow us on Facebook and Twitter to get Latest Information.

Leave a Reply