Sell Dollar At N1,269 – CBN Orders BDCs

• As each BDC gets $10,000 allocation

BY EDMOND ODOK – Still focused on strengthening the Naira value against the dollar, the Central Bank of Nigeria (CBN) says it is allocating $10,000 at N1,251/$ to each Bureau de Change (BDC) operator.

However, the directive from the apex bank is that each BDC will be bound to sell the dollars to eligible customers at a rate not exceeding 1.5 percent above the purchase price, inferring that the BDCs are not expected to sell above N1,269/$1.

In a memo dated March 25, 2024, and addressed to the President Association of Bureau De Change Operators Of Nigeria (ABDCON), the CBN said; “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.”

With reference number TED/DlR/CON/GOM/001/072, the memo signed by Dr. Hassan Mahmud, Director, Trade & Exchange Department, and titled; “SALES OF FX TO BDCs TO MEET RETAIL MARKET DEMAND FOR ELIGIBLE INVISIBLE TRANSACTIONS”, further said; “ALL eligible BDCs are directed to make the Naira payment to the under-listed”, adding; “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”.

Forefront News recalled that the CBN Governor, 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.

This is as he explained 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, adding; “All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off”.

However, the CBN memo warned thus; “Please note that any BDC that breaches the above terms shall be sanctioned appropriately, including outright suspension from further participation in the sale.”