As part of measures to strengthen the naira against the dollar, the Central Bank of Nigeria (CBN) says it is allocating $10,000 at N1,251/$ to each Bureau de Change (BDC) operating in the country.
The apex bank also directed each BDC to sell the dollars to eligible customers at a rate not exceeding 1.5 percent above the purchase price.
According to Persecondnews, this suggests that the BDCs won’t sell for more than N1,269/$1.
The CBN gave the directive in a memo signed by the Director, Trade & Exchange Department, Dr. Hassan Mahmud, and addressed to the President of the Association of Bureau De Change Operators of Nigeria (ABDCON).
The memo dated March 25, 2024, with the title “Sales of FX to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions” read: “We refer to our letter to you referenced TED/DIR/CON/GOM/OOI /071 in respect of the above subject wherein the CBN approved a second tranche of sale of FX to eligible BDCs.
“We write to inform you of the sale of $10,000 to each BDC at the rate of NI,251/$1. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.
“ALL eligible BDCs are directed to make the Naira payment to the under-listed CBN Naira Deposit Account Numbers before the close of business on Thursday, March 28, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN branches.’’
“Please note that any BDC that breaches the above terms shall be sanctioned appropriately, including outright suspension from further participation in the sale.”
Persecondnews recalls that the CBN Governor, Dr. Olayemi Cardoso, had in February 2024 outlined a comprehensive strategy meant to curb inflation, stabilise the exchange rate, and instill confidence in the country’s banking system and economy.
He restarted the apex bank’s resolve to sustain growth in the country’s foreign currency reserves as well as improve liquidity in the foreign exchange market.
Author
Leave a comment