The Central Bank of Nigeria, CBN, says it will sell $10,000 to each Bureau de Change operator in the country at the rate of N1,251/$1.
The apex bank directed the BDCs to sell to end users at a spread of not more than 1.5 percent of purchase price.
This implies that the BDCs are not expected to sell above N1,269.8/$1
This was contained in a letter to the President of Association of Bureaux De Change Operators of Nigeria, ABCON, signed by Dr. Hassan Mahmud Director, Trade & Exchange Department of CBN on Monday.
The letter read, “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 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 N1,251/$1. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 per cent above the purchase price.
“ALL eligible BDCs are directed to make the Naira payment to the underlisted CBN Naira Deposit Account Numbers before 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 above terms shall be sanctioned appropriately, including outright suspension from further participation in the sale.”
Earlier in February, CBN sold $20,000 to each of 785 BDCs at N1,310 per dollar, directing the BDCs should sell to end users at a spread of not more than 1.0 percent of purchase price or N1,314.01 per dollar.
The CBN discontinued the sale of foreign exchange to BDCs on July 27, 2021, accusing them of trading FX wholesale amounts greater than $5,000, in contravention of their licences, and Nigeria’s FX regulations.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
