CBN Goes Below Market Rate, Sells Dollars To BDC Operators At N1,101/$

• BDCs will be getting the dollar from the CBN at the rate of N1,101/$.

• The CBN instructed them to sell dollars at a rate not exceeding 1.5% above the purchase price.

• That means BDCs are not expected to sell above N1,117/$1.

Eko Hot Blog reports that bureau de change (BDC) operators have started buying foreign exchange (FX) from the Central Bank of Nigeria (CBN) at the rate of N1,101/$.

The development comes after CBN’s announcement in a circular on Monday.

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The circular, titled, ‘Sales of FX to Meet Retail Market Demand For Eligible Invisible Transactions’ and dated April 8, was addressed to the president of the Association of Bureau De Change Operators of Nigeria (ABCON).

The development comes less than a month after the second announcement of sales.

The new directive will see the CBN sell $10,000 to each BDC at a rate of N1,101/$1.

The apex bank instructed BDCs to sell dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.

This suggests BDCs are not expected to sell above N1,117/$1.

The selling rate is below the N1,251.05/$1 recorded at the end of last week, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

The CBN “strongly” advised BDCs to continue to abide by the rules and conditions as stipulated in earlier letters/circulars.

“We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1101/$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,” the circular reads.

“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 08, 2024, and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches:

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“All BDCs are strongly advised to continue to abide by the rules and conditions as stipulated in our earlier letters/circulars.”

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