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CBN begins sale of dollars to BDCs at N1,101/$1

Nigeria recorded $282.61 million as total direct foreign exchange (FX) remittances in the first quarter (Q1) of 2024. Nigeria recorded $282.61 million as total direct foreign exchange (FX) remittances in the first quarter (Q1) of 2024.

The Central Bank of Nigeria (CBN) has announced the sales of foreign exchange (FX) to the bureau de change (BDC) operators at the rate of N1,101/$.

The CBN disclosed this in a circular, titled, ‘Sales of FX to Meet Retail Market Demand For Eligible Invisible Transactions’, dated April 8.

The circular was addressed to the president of the Association of Bureau De Change Operators of Nigeria (ABCON).

The development comes less than a month after the announcement of the second tranche of sales on March 25.

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According to the circular, the regulator instructed each BDC operator to sell the dollars to eligible customers at a rate not exceeding 1.5 percent above the purchase price.

This means that BDCs are not expected to sell above N1,117/$1.

“We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1101/$1,” the document reads.

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“The BDCs are in turn to sell to eligible end users at a spread of not more than 1.5 percent above 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.”

On April 6, ABCON urged the CBN to reduce its applicable buying FX rate downward due to the naira’s speedy recovery.

The group said the N1,251/$ applicable buying rate the CBN pegged for BDC operators would result in losses for its members, as the open market rate stands at N1,235/$.

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