The Central Bank of Nigeria (CBN) has announced the resumption of dollar sales to Bureau De Change (BDC) operators, as stated in a circular uploaded to its website on Monday. Under this arrangement, the CBN will sell $10,000 to each BDC at a rate of N1101/$, with a directive for operators to sell at a spread not exceeding 1.5 per cent above the CBN rate.
This decision follows previous interventions by the CBN in March, where it sold $10,000 to BDCs at a rate of N1,251/$ and directed them to sell to eligible customers at a rate not exceeding 1.5 per cent above the purchase price (N1,269/$1). Earlier in February, the CBN had sold foreign exchange worth $20,000 to eligible BDCs across the country.
In response to an appeal by the Association of Bureau De Change Operators of Nigeria (ABCON) to adjust the applicable exchange rate, the CBN has taken this step to support the operations of BDCs amidst market realities. ABCON’s National President, Aminu Gwadabe, highlighted this appeal in a letter addressed to the CBN Director, Trade and Exchange Department, obtained by The PUNCH.
Despite the parallel market rate of 1,235/$ being lower than the BDCs’ applicable buying exchange rate of 1,251/$ set by the CBN, this move aims to maintain stability and facilitate access to foreign exchange in the market.
Furthermore, the CBN directed eligible BDCs to commence payment of naira deposits into designated CBN accounts from April 8, 2024, and submit proof of payment and other required documents at the appropriate CBN branches for disbursement.
Amidst efforts to defend the naira, recent data from the CBN’s website revealed a sharp decline of approximately $1.02 billion in Nigeria’s foreign exchange reserves within an 18-day period, as of April 4. This highlights the ongoing challenges and interventions in managing the country’s foreign exchange market.
