Expert predicts naira appreciation as BDCs receive more Diaspora remittances

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) has said that the naira will soon bounce to glory as BDCs are set to receive more Diaspora remittances.

Gwadabe told our reporter on Tuesday in Lagos that the improved inflows of Diaspora remittances into the economy, in spite of falling oil prices, would fast track rate convergence and unification.

According to him, the increased inflows will help the CBN to address the dwindling confidence of foreign investors in assuring them of meeting the liquidity needs of the BDC sub-sector rather than that of the inter-bank market.

The financial operator explained that foreign investors relied heavily on the liquidity from the BDC sub-sector in informing their decisions on the economy.

“The impacts of this development will afford the CBN to glut the BDCs sub-sector for a better rates stabilisation,’’ Gwadabe said.

The association’s president urged currency hoarders and speculators to stay away from their nefarious activities as the naira would soon rebound to glory.

It was reported that the available records show that Diaspora remittances to the nation’s economy have grown from 21 billion dollars in 2015 to 35 billion dollars in 2016.

A CBN circular dated Aug. 9, 2016 also authorised International Money Transfers Services Operators (IMTSO) to sell foreign currencies accruing from inward money remittances to BDCs.

In a bid to liberalise the foreign exchange market, the apex bank had on Aug. 30, 2016 licensed 11 additional IMTSO’s.