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CBN may increase BDCs’ weekly dollar sales to $50,000 after recapitalisation


News » Health and Beauty
Nigeria

August.04.2014

Analysts are hopeful that the Central Bank of Nigeria (CBN) may increase the amount of weekly dollar sales to between USD38,000 and USD50,000 per BDC following the conclusion of bureau de change (BDC) recapitalisation on July 31, 2014 and the likely reduction of operators.

The CBN had given the BDCs till July 31, 2014 to comply with the new requirements for the operations of bureau de change.
According to analysts at Cowry Asset Management Limited, “With the conclusion of BDC recapitalisation on July 31 and likely reduction of operators, we expect CBN to increase the amount of weekly dollar sales to between USD38,000 and USD50,000 per BDC in other to maintain exchange rate stability at the BDC and parallel markets”.

Meanwhile, the local currency last week depreciated by 0.30% (or N0.50) to N167.50/$ amid limited dollar sales to BDCs by the central bank. The nation’s currency also depreciated at the parallel market by 1.20% (or N2.00) to N169.00/$.

The official window was open only on Wednesday due to public holidays hence the central bank offered only USD400 million but sold a total of USD381.27 million (or N59.38 billion) to end users. This was lower than USD671.92 million (or N104.64 billion) sold in the preceding week.

Article Credit: Businessdayonline

Updated 4 Years ago
 

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Tags:     CBN     BDC     Cowry Asset Management Limited    

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