Naira Firms Against Dollar On Parallel Market

The naira traded at N250 to the dollar on the parallel market yesterday, just up from Friday’s low of N251, as dollar shortages hit Bureaux De Change (BDC) operators, traders said.
Nearly half of 2,818 bureaux de change operators were denied access to the Central Bank of Nigeria’s (CBN) dollar sale last week because of incomplete documentation, weakening the naira.
On the official market, the naira traded at N198.90 to the dollar, around a rate it has been pegged to since February. Traders expect dollar allocation to BDC operators to increase tomorrow as companies update their records with the central bank.
Reuters quoted acting President of the Association of Bureaux De Change Operators of Nigeria (ABCON) as saying that, “We expect more dollar supply this week.”

The CBN has asked all bureaux de change operators to submit accounts showing their dollar usage at the start of each week before they can gain access to future sales, a move traders said was aimed at curbing speculation.