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Sellers of FX above $10,000 must declare source to BDCs – CBN

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As part of the strategies to save the economy, the Central Bank of Nigeria (CBN) says sellers of foreign exchange (FX) of $10,000 and above to Bureau De Change (BDC) operators must declare the source of the forex.

 

The apex bank made this known on Friday in a document titled ‘Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria’.

 

CBN also mandated the sellers to “comply with all AML/CFT/CPF regulations and foreign exchange laws and regulations”.

 

Also, the CBN said customers can move foreign currencies from their domiciliary accounts with Nigerian banks to BDCs.

 

“All digital/transfer purchases of foreign currencies shall be credited to the BDC’s Nigerian domiciliary account,” CBN said.

“Payments for all digital/transfer purchases of foreign currency by a BDC shall be by transfer to the customer’s Naira account. If the customer is non-resident (whether Nigerian or not), a BDC may issue the customer a prepaid NGN card.”

READ  CBN ‘concludes’ payment of verified FX claims by foreign airlines

The financial regulator said BDCs can source foreign currencies from tourists, returnees from the diaspora, and expatriates with foreign exchange inflows from work, travel, investment or their domiciliary accounts.

 

Other allowable sources mentioned by CBN are residents with foreign exchange inflows from work, travel, investment or their domiciliary accounts, and International Money Transfer Operators (IMTOs).

 

CBN also listed embassies, hotels that are authorised buyers of foreign currencies, the Nigerian foreign exchange market (NFEM), as well as any other source that the apex bank may specify.

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Naira appreciates to N1,100/$ in parallel market

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The naira appreciated further on Monday in the parallel section of the foreign exchange (FX) market.

 

At the Lagos street market, currency traders, also known as bureau de change (BDC) operators, quoted the naira at N1,100 to the greenback.

 

The traders put the buying price of the dollar at N1,070 and the selling price at N1,100 — leaving a profit margin of N30.

 

The figure represents an appreciation of N50 or 4.34 percent from the N1,150/$ it traded on April 12.

 

At the FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, the local currency rose by 5.72 percent or N69.02 to N1,136.04/$ on Monday — from N1,205.06/$ on April 12.

 

On April 11, the presidency said President Bola Tinubu’s multi-faceted approach to eliminating foreign exchange (FX) racketeering is strengthening the naira against global currencies.

 

In a statement on Wednesday, Ajuri Ngelale, special adviser to the president on media, said the country’s financial position will improve, leading to the possibility of Nigerians experiencing a stronger naira and a decrease in the prices of goods.

READ  N’assembly should block off-cycle polls — elections should hold same day, says Jonathan

 

“The President has been very consistent in his view that the labour pains felt by our people and the incredible sacrifices made by our people over the past 10 months would be rewarded across the board,” Ngelale said.

 

On April 12, Goldman Sachs Group said the naira could extend gains to trade below N1,000 to the dollar.

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Naira strengthens, trades at N1,150/$ in parallel market

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The naira, on Friday, appreciated to N1,150 per dollar at the parallel section of the foreign exchange (FX) market.

Currency traders in Lagos, also known as bureau de change (BDCs) operators, quoted the buying rate of the greenback at N1,110 and the selling price at N1,150 — leaving a profit margin of N40.

 

The naira appreciated by 0.86 percent from the N1,160 recorded on April 11.

 

“The dollar is falling and it is not my fault. It is how the FX market is now,” Lawal, a BDC operator, said.

 

Also, FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, said the naira rose by 7.16 percent or N88.23 to N1,142.38/$ on Friday — from N1,230.61/$ on Monday.

 

The appreciation of the naira is coming a few days after the CBN opened the third tranche of sales to BDC operations.

 

The apex bank began the sale of foreign exchange to BDC operators at the rate of N1,101/$ on April 8.

READ  CBN to release re-designed Naira notes December

 

Also, on the same day, the CBN directed all banks to stop the use of foreign currency-denominated collaterals for naira loans.

 

The financial regulator is intensifying its efforts to boost liquidity and strengthen the naira.

 

Meanwhile, earlier today, Goldman Sachs Group Inc. said the naira could extend gains to trade below N1,000 to the dollar.

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Air Peace: Patronise local airlines on int’l routes, Keyamo urges Nigerians

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The minister of aviation and aerospace development, Festus Keyamo, has asked Nigerians to fully patronise Air Peace and other local airlines flying international routes.

 

This, Keyamo said, is the only way local airlines can survive stiff competition from foreign carriers.

 

On March 30, Air Peace, Nigeria’s flag carrier, commenced its Lagos-London flight services — a landmark achievement celebrated by many Nigerians.

 

Following the milestone, Allen Onyema, chief executive officer (CEO) of Air Peace, on April 9, said some airlines are conspiring to take his company out of business by underpricing the flight tickets for the Lagos-London route.

According to the entrepreneur, the foreign airlines’ governments are supporting them to do this and take Air Peace out.

Speaking to TheCable on Thursday, Keyamo said while he cannot currently make a policy statement on what the Nigerian government will do to support Air Peace, President Bola Tinubu’s administration would continue to assist local entrepreneurs.

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“The first thing is for Nigerians to fully patronise not only Air Peace but all indigenous airlines on international routes. Before the federal government does anything, let Nigerians patronise him and know that this is our indigenous airline,” he said.

 

“As for government, I cannot make any policy statement for the government now because I am a minister. Whatever we can do, we will discuss that behind the scenes. But it’s wrong for me to make a policy statement now.

“As I have said earlier, one of my main goals in office is to help Nigeria’s domestic airlines grow and improve, supporting President Bola Tinubu’s Renewed Hope Agenda”.

Keyamo added that the federal government would continue to protect Air Peace and other Nigerian carriers that may seek to operate international service.

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