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

Monday, March 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.

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