CBN Resumes Dollar Sales To BDCs After Stopping In March

Confidence UbaniJuly 19, 20241 Mins read487

The Central Bank of Nigeria (CBN) has resumed the sale of dollars to Bureau de Change (BDC) operators. This decision came after a sharp depreciation, which recently saw the Naira drop to N1,640 per dollar in the parallel market. As earlier reported, BDC operators have been sidelined since March.

Through a circular signed by Acting Director A.A. Mahdi of the Trade and Exchange Department, the CBN outlined that each BDC will now receive $20,000 to meet the demand for invisible transactions. The exchange rate for these sales has been set at N1,450 per dollar. This aims to align with rates observed in the Nigeria Autonomous Foreign Exchange Market (NAFEM).

Moreover, BDCs are directed to sell to end-users at a margin not exceeding 1.5% above the CBN’s purchase rate, translating to approximately N1,475.75 per dollar. According to the CBN, this directive is part of ongoing efforts to achieve a market-determined exchange rate and curb distortions that impact the parallel market.

Following this announcement, the Naira experienced a rapid appreciation, closing at N1,572 per dollar on Thursday compared to N1,640 earlier in the day. Despite this improvement, the Naira has seen a net depreciation of N2 against Wednesday’s closing rate of N1,570 per dollar in the parallel market.

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