The Central Bank of Nigeria (CBN) on Monday has offered to sell dollars to Bureau De Change (BDC) operators at the rate of N1,101 per one dollar just as it announced the sales of $10,000 each to Bureau De Change operators.
According to a circular uploaded to its website on Monday, the apex bank directed the operators to sell at a spread not more than 1.5 per cent above the purchase rate.
In March, the apex bank sold $10,000 to BDCs at a rate of N1,251/$ and instructed the BDCs to sell to eligible customers at a rate not exceeding 1.5 per cent above the purchase price (N1,269/$1).
This followed the CBN’s earlier decision to sell foreign exchange worth $20,000 to eligible BDCs across the country in February.
The statement read, “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 per cent of the purchase price.”
“All eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from today, Monday April 08, 2024 and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches.”
This is the third attempt by the CBN to sell FX to BDCS after a prolonged period of suspension by the central bank in 2021. The ban was lifted earlier in the year following the revocation of licences of over 4173 BDC operators in February.
The first attempt was in February, with the apex bank selling $20,000 to each BDCS at the rate of N1,301/$. By the second attempt, the bank reduced the allocation by 50% and sold FX at a rate of N1,251/$1. In less than three months, the CBN has influenced an appreciation of naira by 18.17% against the US dollar.
The Association of Bureau De Change Operators of Nigeria (ABCON) recently appealed to the CBN to adjust and lower its applicable exchange rate downward below the N1,251/$ it pegged for the BDC operators, as it has become expensive.
The request by the BDCs occurred amid historic development where for the first time in 15 years, the parallel market rate of N1,235/$ is lower than the official rate of N1252/$, which is the applicable buying exchange rate for the BDCs.
