Naira will rebound soon – BDC operators

Naira will rebound soon – BDC operators

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Operators in the money market have expressed optimism that the value of Naira would rise on September 26, 2016.
The operators, who gave the assurance under the Association of Bureau De Change Operators of Nigeria’s umbrella, attributed its projection to the introduction of an international money transfer giant, Travelex.
The President, ABCON, Alhaji, Aminu Gwadabe, disclosed that the operations of the Forex dealer would enhance transparency in the distribution network.
According to him, Travelex was officially directed by the Central Bank of Nigeria to distribute Forex to Bureaux De Change operators.
“Forex distribution would be efficient and uniformed across ABCON members unlike what was obtainable in the past. Travelex has the technology to sell Forex to about a 1,000 BDCs within a couple of hours, which is a major advantage.
“Against this background, the naira is expected to be on recovery path from Monday as the distribution of Forex to BDCs will boost liquidity in the market. The boosting of liquidity in the market will dampen the fears of investors and market speculators, thereby raising their confidence in the market. This is a purely ABCON and Travelex arrangement, and has the capacity of removing the bottlenecks in the Forex distribution chain,” he said.
Gwadabe added that Travelex has the technology to pay about 1,000 BDCs within two hours and the new arrangement also eliminates relating with bank account officers.
On the CBN’s retention of the Monetary Policy Ratio at 14 per cent, Gwadabe said, “I agree totally with the decision of the apex bank to retain the rate.
“The more the naira at the disposal of Nigerians, the more they want to convert it to dollars for speculation purposes.”

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