The Naira has ended the week with mixed performances, ending the week strong in the parallel market and depreciating in the official market on Friday.
This is at variance with the currency’s performance last week, where both markets showed a week-long appreciation stretch.
According to data published on the CBN website on Friday, the naira closed at N1,554/$1, which is a depreciation from Wednesday’s closing rate of N1,545/$1, which was also a depreciation from N1,540/$1 on Tuesday, effectively concluding a week-long depreciation rally.
The in-day trading activity shows the naira did N1,570/$1 [highest] and N1,537/$1 [lowest] with a simple mean of N1,551.85/$1 on Friday.
In the parallel market, the naira traded at N1595/$1 on Friday, up from N1610/$1 on Wednesday, down from N1600/$1 on Tuesday, according to data from Nairametrics research.
In the parallel market, the naira also shows a continuous depreciation stretch against major currencies. The naira traded N2,148.00/£1 which was down from N2,145.00/£1 it closed at on Wednesday, according to data from Nairametrics research.
What you should know
This development came as CBN, this week, refuted claims circulating in the media suggesting an extension of the deadline for the recapitalisation of Bureau De Change (BDC) operators to December 31, 2025.
In a statement on Wednesday by the CBN’s Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi Ali, the bank dismissed the information as “false” and “misleading.”
The bank noted that no such extension had been granted, emphasizing that the official deadline remains set for June 3, 2025, as initially communicated by the bank.
- The revised framework mandates that BDC operators must meet stricter capital requirements of N2 billion for Tier-1 operators and N500 million for Tier-2 operators.
- The CBN’s stance on this matter is part of its broader efforts to streamline the operations of BDCs and enhance compliance in the foreign exchange market.
- Bureau De Change (BDC) operators under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON) earlier said that the June 3 recapitalisation deadline for its members remained sacrosanct.
- ABCON had raised concerns over the recapitalization, as most of its members have been unable to meet the deadline.
- The capital raising initiative is part of the CBN’s reforms to reposition the BDC sector better to fulfill its role in Nigeria’s foreign exchange market.
- The new guidelines were issued after consultations with stakeholders and in line with the powers vested in the CBN by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
- ABCON had always advocated against a high share capital limit for its members, arguing that the BDC business is not capital-intensive, as they do not take deposits or lend funds to customers.
