The Central Bank of Nigeria (CBN) has once again announced the sale of dollars to Bureau De Change (BDC) operators, according to a circular published on its website on Monday.
The apex bank revealed its plan to allocate $10,000 to each BDC at the rate of N1,101/$, instructing them to maintain a spread not exceeding 1.5 percent above the CBN rate.
In March, the CBN sold $10,000 to BDCs at a rate of N1,251/$, directing them to sell to eligible customers with a cap not exceeding 1.5 percent above the purchase price (N1,269/$1).
This move follows the bank’s earlier decision in February to sell foreign exchange worth $20,000 to eligible BDCs across the country.
According to the statement, “We write to inform you of the sale of $10,000 by the CBN to BDCs at the rate of 1101/$. The BDCs are, in turn, to sell to eligible end-users at a spread not more than 1.5 percent of the purchase price.”
The recent action comes after an appeal by the Association of Bureau De Change Operators of Nigeria (ABCON) to the CBN to adjust and lower its applicable exchange rate below the N1,251/$ previously set for its members.
ABCON National President, Aminu Gwadabe, communicated this request in a letter addressed to the CBN Director, Trade and Exchange Department, as obtained by The PUNCH.
The parallel market rate of 1,235/$ is lower than the BDCs’ applicable buying exchange rate of 1,251/$ (plus a 1.5 percent margin) set by the CBN in its latest tranche of interventions.
Furthermore, the CBN directed all eligible BDCs to initiate payment of naira deposits into the designated CBN accounts starting from April 8th, 2024.
Operators were also instructed to submit proof of payment and other requisite documents at the appropriate CBN branches for disbursement.
As the CBN continues its efforts to stabilize the naira, recent data on its website indicates a significant decline of about $1.02 billion in Nigeria’s foreign exchange reserves within 18 days, as of April 4th.