Alert: CBN increases forex allocation to BDCs to $50k/week

Reports reaching Nigeria reveals that the Central Bank of Nigeria (CBN) has increased the limit that banks can sell to Bureaus De Change (BDCs) from $30,000 to $50,000.
The CBN a fortnight ago reintroduced sale of forex to the BDCs via funds from foreign remittances after banishing them from the interbank market in January.
While addressing journalists at the Bankers’ Committee meeting in Abuja Tuesday, the Managing Director of UBA Mr. Kennedy Uzoka explained that the decision to increase the amount that banks can sell to BDCs “was taken to drive down the price and ensure that people get enough to pay school fees as schools are about to open and grieving that people who will be traveling at this period will require Basic Travel Allowance (BTA) and PTA.”
According to an article in The Nation, Members of the bankers’ committee urged BDCs to approach banks and apply for foreign exchange. The recent decision to readmit BDCs is expected to reduce the rate disparity between the interbank market and the parallel market. However, this has not had the desired effect as demand continues to far outweigh supply.
The CBN has been running from pillar to post to salvage a foreign exchange crisis that was created by a cocktail of bad monetary policies taken since the Buhari administration came into power.
Analysts see this as a positive move but are skeptical that it will improve the forex situation. They also opine that the CBN’s recent directive against International Money Transfer Operators to stop operations in the country without license is also likely to affect supply of forex in the interbank market.
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BOOM: Nigeria’s External Reserves Drops To Lowest In 11 Years

Nigeria’s foreign exchange reserve fell to $25,780,765,483 (25.78 billion) as of August 16, the lowest we have seen since 2005. The drop was down 2.11% from a month ago. The Nations external reserves dropped below $26 billion for the first time on the 5th of August 2016 after it closed at about $25,971,610,949. In fact, the external reserves has dropped by about $480 million dollars in August alone compared to just $100 million in the whole of July. Ironically, the current balance of $25.9 billion is worth about 80% more than what it was in Naira following the depreciation of the naira after it was floated. The CBN has in the past few days ramped up sales of dollars at the interbank in the hope that it will create liquidity in a market that is yawning gape to swallow forex after nearly almost two years of intense rationing by the CBN. The Naira weakened to its lowest ever at the interbank after it closed at about N362.5/$1 in midday trading. The Naira will eventua...

Alert: Naira Gains A Massive 5% Against the Dollar

The exchange rate rebounded on Friday to close at N308 at the official interbank market. The local currency gained about 5.2% reversing the N325 it closed with on Thursday. According to reports, the gains was mostly due to a sale of forex by the Central Bank of Nigeria providing enough liquidity to meet the demand currently in the market. The naira has closed at an all time low of N364 to the dollar on Thursday following a surge in demand. The central bank has been selling dollars almost daily to boost liquidity and support the naira. Join our BBM channel for instant updates : C0030863D

Emefiele gives insight, on what to Expect during his second term

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