CBN Slashes BDC Exchange Rate to N1,269/$1

Confidence UbaniMarch 26, 20241 Mins read483

The Central Bank of Nigeria (CBN) has slashed the exchange rate within the Bureau De Change (BDC) forex market segment. On Monday, the apex bank disclosed that it will sell $10,000 to each Bureau De Change operator at a new rate of N1,251 per U.S. dollar.

BDCs are obligated to sell the allocated dollars to eligible end users at a spread not exceeding 1.5% above the purchase price or N1,269/$1. This is to address the persistent price distortions affecting the naira exchange rate in the forex markets.

The CBN made this clear in a circular addressed to Nigeria’s President of the Association of Bureau De Change Operators. The directive issued by the CBN instructed all eligible BDCs to complete naira payments to designated CBN Naira Deposit Account Numbers before the close of business on Thursday, March 28, 2024. Failure to comply with these terms will result in appropriate sanctions, including potential suspension from further sales participation.

The circular stated: “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 regarding 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.”

This statement was signed by Dr Hassan Mahmud, Director of the Trade & Exchange Department at the CBN, and follows the CBN’s previous sale of $20,000 to each of 785 BDCs in February at a rate of N1,310 per dollar.