CBN Sells Dollar to BDC Operators at N1,021 to Ease Fresh Concerns

April 23, 2024
BDC operators Transaction Margin

By Aduragbemi Omiyale

In a bid to address fresh concerns from the recent decline in the value of the Naira to the US Dollar in the official market, the Central Bank of Nigeria (CBN) has announced the sale of foreign exchange (FX) to Bureaux De Change (BDC) operators in the country.

A circular dated April 22, 2024, signed by the Director of Trade and Exchange Department of the CBN, Mr Hassan Mahmud, disclosed that $10,000 was sold to each of the forex traders at N1,021/$1.

The BDC operators, about 1,583, are expected to exchange the Naira for the Dollar to their customers at a spread of not more than 1.5 per cent above the purchase price.

The apex bank advised the FX sellers to fund their Naira-denominated bank accounts to receive their allocations.

“We write to inform you of the sale of $10,000 by the CBN to BDCs at the rate of N1,021/$1.

“The BDCs are, in turn, to sell to eligible end-users at a spread not more than 1.5 per cent above the purchase price.

“All eligible BDCs are, therefore, directed to commence the payment of the Naira deposit to the under-listed CBN Naira Deposit Account Numbers from today (yesterday), April 22, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement of FX at the respective CBN branches “in Abuja, Lagos, Akwa, and Kano).

“All BDCs are advised to continue to abide by the rules and conditions as stipulated in our letters/operational guidelines,” the notice said.

Business Post reports that in the spot market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), on Monday, the Nigerian Naira depreciated against its American counterpart by 5.5 per cent or N64.50 to close at N1,234.49/$1 versus last Friday’s closing rate of N1,169.99/$1.

Also, in the parallel market, the local currency weakened against the Dollar yesterday by N100 to trade at N1,250/$1, in contrast to the preceding day’s value of N1,150/$1.

The recent fall in the value of the domestic currency had been attributed to forex manipulators at the cryptocurrency exchange platforms, but this newspaper later explained what could have been the cause of the mess.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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