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Travelex begins weekly dollars sales to BDCs naira likely to recover.

The naira is expected to make a surprise
recovery from today as Travelex, a global foreign exchange (forex)
dealer, begins the sale of $15,000 weekly to each of the 3,000 Bureaux
De Change (BDC) operators.
Association of Bureau De Change
Operators of Nigeria (ABCON) President Aminu Gwadabe, who broke the news
yesterday, said $45 million will flow into the financial system with
each of the BDCs getting $15,000. The exercise, he said, would
strengthen the naira in both the official and parallel markets.
The naira was yesterday exchanging at
N473 to dollar in the parallel market and N310 to dollar in the official
market. The local currency has lost over 70 per cent of its value in
both markets year-to-date due to plunge in crude oil prices which cut
the country’s dollar earnings.
Gwadabe explained that the funds to be
disbursed to BDCs today, were from the Diaspora remittances estimated at
$21 billion annually. He said the CBN took the right steps by
authorising Travelex to take responsibility of disbursing the Diaspora
to licensed BDCs. He said the $15,000 weekly dollar sales, was an
improvement from the initially approved $10,000 weekly, would deepen
dollar liquidity in the system and strengthen the naira against the
The ABCON boss said the experience and integrity of Travelex will be key in getting the dollars down to BDCs.
He urged all BDC operators, as a matter
of urgency, to visit CBN branches in their respective zones to validate
their en-cashers and signatory mandate cards for Travelex biometric data
capturing excercise.
Gwadabe said the biometric data
capturing project would enable the BDCs access the International Money
Transfer Operators (IMTOs)/Travelex dollars window.
He said remittances have direct positive
and significant impact on consumption, investment, and demand in the
country as it can be used to address short-run output shocks, and even
long run growth. He said that remittances tend to be stable and to
increase during periods of economic downturns and natural disasters.
He said the CBN is reaffirming the
country’s commitment to building an enabling environment and
level-playing field for international money transfer services to
He said that by increasing the number of
IMTOs from three to 14, the CBN under its Governor, Godwin Emefiele, is
setting the economy on the path of development in the medium- to
long-term and also, restore integrity in the international money
transfer business.
Gwadabe said the ongoing dollar sales to
BDCs would strengthen the operators to meet the forex demand at the
retail end of the market so that they can continue to enhance employment
generation in the country.
The ABCON boss believes that despite the
challenges facing the economy, the CBN and BDCs would continue to work
together and find sustainable solutions that can help the country
wriggle out of the ongoing forex crisis and achieve full economic
He pledged that ABCON would continue to
ensure that purchased funds were sold to end users and for eligible
transactions and also render returns promptly. He further promised to
ensure strict compliance to the provisions of the anti-money laundering
laws observance of appropriate Know Your Customer principles in the
handling of forex transactions.
Naira recovery likely as Travelex begins weekly dollars sales to BDCs
                          CBN Governor Godwin Emefiele

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