In furtherance of its sustained policy measures to moderate the lingering volatility in the nation’s foreign exchange (FX) markets, the Central Bank of Nigeria (CBN) has hinted that it is allocating $10,000 at N1,251/$ to each Bureau de Change (BDC) operator in the country.
In a memo dated March 25, 2024, and addressed to the President Association of Bureau De Change Operators of Nigeria (ABCON), the apex bank, however, directed 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, implying that the BDCs are not expected to sell above N1,269/$1.
The memo signed by the apex bank’s Director, Trade & Exchange Department, Dr. Hassan Mahmud, and titled “SALES OF FX TO BDCs TO MEET RETAIL MARKET DEMAND FOR ELIGIBLE INVISIBLE TRANSACTIONS” stated: “We refer to our letter to you referenced TED/DIR/CON/GOM/OOI /072 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/$1. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.”
The apex bank further directed that “ALL eligible BDCs are directed to make the Naira payment to the under-listed CBN Naira Deposit Account Numbers before the close of business on Thursday, March 28, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches.
“Please note that any BDC that breaches the above terms shall be sanctioned appropriately, including outright suspension from further participation in the sale”, it added.
Meanwhile, the Naira has sustained marginal appreciation against the US dollar as it gained N14 to close at 1,408/$ at the official market on Monday, March 25, 2024.
It would be recalled that the apex bank Governor, Olayemi Cardoso, had in February 2024 outlined a comprehensive strategy aimed at moderating the surging inflation rate, stabilise the FX rate, and instill confidence in the country’s banking system and economy.
Cardoso also spoke on the apex bank’s determination to sustain growth in the country’s foreign currency reserves as well as improve liquidity in the FX market, adding that the different measures the CBN’s management has taken to boost reserves and create more liquidity in the markets have started yielding the desired results.
