Tuesday, January 10, 2017

CBN meets BDCs Over Conflicting Exchange Rates

The Central Bank of Nigeria (CBN) will be meeting with bureau de change (BDC) operators in a bid to “correct” the nation’s conflicting exchange rates.

Aminu Gwadabe, president of the dureau de change association (ABCON), said the body would meet central bank officials on Tuesday.

“We would like to find ways to resolve the issue of multiplicity of exchange rates and ensure stability in the market,” he told Reuters, adding that the aim was to boost liquidity and attract foreign investors.

The naira has lost a third of its official value against the dollar in 2016 after the apex bank abandoned its fixed exchange rate regime, which had the local currency trade at 197 to a dollar.

Vice-President Yemi Osinbajo and Kemi Adeosun, the minister of finance, had hinted that the country would get more flexible with its exchange rate system, narrowing the conflicting gap between the parallel and official market.

On Sunday, Tunde Bakare of the Latter Rain Assembly, and an ally of President Muhammadu Buhari called on the CBN to dump its “cunfusing” exchange rate regime.

The naira traded for 490 to the dollar at the parallel market on Monday, while the official side of the market exchanged for 305 to the same dollar.

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