BusinessHighlight

CBN sells fresh dollars to BDCs at N1,021/$ as naira loses steam

"We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1"

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The Central Bank of Nigeria (CBN) has issued another circular to Bureau De Change (BDC) operators, informing them that direct sales of US dollars are available at a discounted rate of N1,021 per dollar.

Persecondnews reports that this will be the second sale in the month of April and the fourth in 2024.

The statement reads: “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1.

“The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.

“All eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from today, Monday, April 22, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement of FX at the respective CBN Branches.”

The purpose of this stipulation is to prevent price gouging and transfer the benefits of the discounted rate to consumers who need foreign exchange for various personal transactions.

The proactive measure by the apex is a direct reaction to the Naira depreciating in its value against the United States dollar to N1,234 at the official foreign exchange market on Monday, according to data obtained from the FMDQ securities exchange.

The exchange rate means the naira fell by N65, or 5.26 percent, from N1,169.99/$1 recorded on Friday.

On Wednesday, the local currency had strengthened to around N1,072.74, as traders projected the naira could trade below N1,000/$1 for the first time.

However, the latest drop appears to coincide with the remarks of the apex bank governor, Yemi Cardoso, who stated that the intent of the bank was not to defend the naira when asked about the sudden drop in external reserves.

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