Naira weakens to N470 per dollar at parallel market

The Naira on Friday, October 28, weakened again to N470 per dollar in the parallel market, but the Central Bank of Nigeria (CBN) has moved to find a lasting solution.
The depreciation comes after the local currency had recovered from N470 it traded on Wednesday, October 26, to close at N465 at the parallel market on Thursday, October 27.
However, reports have it that the current rate has prompted the CBN to meet with Bureaux De Change (BDC) operators and Travelex to evolve measures to halt the persistent slide of the currency.
Dollar to Naira
According to BDC sources, the persistent drop of the local currency this week is due to the delay of the weekly dollar sale of $15,000 by Travelex to each BDC.
A BDC source told NAIJ.com: “The dollar has gone up because Travelex is yet to sell to us. But we believe they would do so before the end of today. If that happens, the exchange rate will drop before the end of today.”
However, Vanguard reports that the CBN has met with Travelex and Association of Bureaux De Change Operators of Nigeria (ABCON), to evolve measures to enhance supply of dollars and halt the depreciation of the naira.
Alhaji Aminu Gwadabe, ABCON president said: “Yes we met with the CBN and Travelex to identify the problem and proffer solutions. Much of the problem is because BDCs outside Lagos are yet to be incorporated into the weekly dollar sale by Travelex. As a result there is increased demand pressure on the market in Lagos, causing the rate to go up. Also remember that we are in the ember months, and preparation for the yuletide season is increasing demand for dollars.
“To address this, the CBN has directed that First Bank should begin to sell to BDCs outside Lagos. It also directed Travelex to open up more locations across the country to serve BDCs outside Lagos. Also the number of BDCs accessing the weekly dollar sale in Lagos has been increased from 1000 to 1,400. So the situation in the market now is temporary. We expect the rates to drop as soon as these measures are implemented.”
Meanwhile, you can check out NAIJ.com’s Bureau De Change ‘market’ here for the best rates on foreign exchange.