Naira gains N2 as CBN intervenes in BDC segment

*Operators move to resolve leadership crisis
The Naira yesterday appreciated by N2 at the parallel market following announcement by the Central Bank of Nigeria (CBN) to intervene in the Bureaux de change, BDC segment of the foreign exchange market by selling additional $30,000 to each them on Friday.

Mr Godwin Emefiele answering questions during his screening by the Senate for Central Bank Governorship in Abuja on Wednesday

In response the parallel market exchange rate dropped to N207 per dollar from N210 on Monday, thus reducing the gap between the official and parallel market exchange rate to N39 from N42.
Meanwhile BDC operators have commenced moves to resolve the leadership crisis in the Association of Bureaux De Change of Nigeria (ABCON), which is the umbrella body of BDCs in the country.
The decision of the apex bank to intervene in the BDC segment was announced in a circular signed by Mr. Olalekan Gbadamosi, Director, Trade and Exchange Department, CBN. The circular titled, “Special Intervention in the Bureaux De Change (BDC) segment of the foreign exchange market”, stated, “This is to inform all licensed operators that in order to improve the liquidity in the BDC segment of the foreign exchange market, the Central Bank of Nigeria will be intervening in the market by selling $30,000 to interested BDCs on Friday 06, February 2015. This is in addition to the weekly sales to operators.
Interested BDC operators are therefore advised to fund their accounts on or before Wednesday 04, February 2015 to accommodate the proposed intervention”.
BDC operators commended the decision of the apex bank and resolved to reciprocate the gesture by ensuring stability of the exchange rate and forestall further depreciation of the naira in the BDC segment. Speaking at a stakeholders meeting of BDC operators in the South West zone, Aminu Gwadabe, Chief Executive Officer (CEO) of Sabil BDCs said that BDC operators had pledged to the apex bank to ensure appreciation of the naira and reduction in the gap between the official and parallel market rate.
Meanwhile, BDC Operators at the Stakeholders meeting adopted four resolutions aimed at resolving the leadership crisis in ABCON. Addressing the meeting, Mr. Abdul Rasheed Amao, CEO, A&S BDC, and a member of the stakeholders’ committee, which convened the meeting, said that the leadership crisis had denied BDC operators of a voice to speak on their behalf at a time such voice is needed most. He said the meeting was convened to allow BDC operators brainstorm on the way out of the leadership crisis. Consequently, the meeting adopted four resolutions based on recommendations of the seven member stakeholders committee. Which was later expanded to 11 members.

According to the resolutions: Members of the Board of Trustees and the Executives to withdraw all cases in court and resolve all the issues amicably; There should be an emergency general meeting within 60 days; and the stakeholders committee should design the agenda of the meeting; The stakeholders committee should call a meeting of the members of the pioneer board of trustees with the aim of resolving all lingering issues.