Home News Finance CBN Sidelines BDCs From $122.67M Forex Allocation, Association Head Says
FinanceNews

CBN Sidelines BDCs From $122.67M Forex Allocation, Association Head Says

407

The Central Bank of Nigeria (CBN) has sidelined Bureau De Change (BDC) operators from its latest allocations. This was disclosed by Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria.

“It is their usual intervention at the NAFEM window which presently excludes the BDCs but is only for banks,” he said.

The exclusion of BDCs from forex allocations began in March and has, since then, raised concerns. CBN’s latest $122.67 million forex allocation focused solely on 46 authorised dealers, majorly on banks. This move is reportedly aimed at stabilising Nigeria’s foreign exchange market by centralising forex sales through banks. The allocation was announced in a statement by Dr Omolara Duke, Director of Financial Markets, as part of its broader efforts to manage market volatility.

The statement read in part, “The Central Bank of Nigeria has sold the sum of $122,671,000 to 46 authorised dealers in its determination to promote stability and reduce market volatility in the foreign exchange market.”

The forex sales took place over two days, with $67.5 million sold to 27 dealers on Wednesday and $55.17 million sold to 19 dealers on Thursday. The transactions were conducted at bid ranges between N1,480/$1 and N1,540/$1, with payments scheduled for mid-July 2024.

The CBN has also mandated that all forex purchases by authorised dealers be used exclusively for trade-backed transactions, reported within 72 hours, to ensure effective use and prevent market abuses.

The exclusion of BDCs has further contributed to the depreciation of the naira to N1,554/$1 at the official market. The CBN has justified this approach as necessary for reducing volatility and improving the efficiency of forex distribution. However, this shift has raised concerns among stakeholders about the availability of foreign currency for small and medium-sized enterprises reliant on BDCs for their forex needs.

Read more: U.S. Judge Dismisses Trump’s Classified Document Case Due To Unlawful Appointment Of Prosecutor

Tinubu’s Govt Seeks Another $50 Million World Bank Loan for Solar Projects, Prepaid Meters, Others

About The Author

Related Articles

Human RightsNews

Togolese Protesters Tear-Gassed in Their Homes as Uprising Demands President’s Resignation

Togolese youths have taken to the streets in a three-day demonstration, demanding...

FinanceNews

DR Congo, Rwanda to Sign US-Mediated Peace Deal  

The Democratic Republic of Congo (DRC) and Rwanda are set to sign...

NewsSecurity

Niger Counter-Terrorism: Four Suspects Captured in Tanda, Including Alleged Militant Leader

A high-risk counter-terrorism operation conducted on June 25 in the village of...

FinanceNews

Missing ₦210tn: Nigerian Senate Rejects NNPCL’s Retreat Excuse, Gives 10-Day Ultimatum to Appear Before Probe Panel

The Nigerian National Petroleum Company Limited (NNPCL) on Thursday failed to appear...