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Naira Depreciates Against Dollar Amid CBN’s New Guidelines For BDC Operators
Naira Depreciates Against Dollar Amid CBN’s New Guidelines For BDC Operators
LAGOS – The Naira experienced depreciation against the Dollar in the foreign exchange market, marking the first decline since last Thursday. This coincided with the Central Bank of Nigeria’s issuance of fresh guidelines to Bureaux De Change (BDC) operators…….CONTINUE READING....KINDLY READ THE FULL STORY HERE▶
According to data from FMDQ, the Naira traded at ₦1485.66 per Dollar on Thursday, down from ₦1462.59 recorded on Wednesday. This represents a ₦23.07 loss compared to the previous day’s trading rate.
In the parallel market, the Naira also depreciated, trading at ₦1460 per Dollar on Thursday, compared to ₦1450 on Wednesday. This marks the first depreciation since the Naira shed ₦73 against the Dollar seven days ago.
The depreciation follows the Central Bank of Nigeria’s directive for BDC operators to reapply for licenses, aiming to regulate the foreign exchange market and curb speculative trading.
However, BDC operators have expressed reservations about the new guidelines, particularly the heightened capital requirements and the compressed timeline for compliance. Aminu Gwadebe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), highlighted concerns about the substantial requirements, stating that they are not in line with global practices.
“The requirement is huge. It is not in line with global practices… We should be careful so that we will not throw away our experience, capacity, and investment,” Gwadebe remarked.
The Central Bank’s initiative is part of ongoing efforts to stabilize the Naira and ensure transparency in BDCs’ operations. However, the response from BDC operators underscores the challenges and complexities involved in implementing regulatory measures within the foreign exchange market.
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