CBN Doles Out $10,000 To Over 1,000 BDCs

Posted by African Examiner Business News, Latest Headlines Monday, April 8th, 2024

(AFRICAN EXAMINER) – The Central Bank of Nigeria (CBN) said it has sold a total of $10, 000 to 1, 588 Bureau De Change (BDC) operators to meet retail market demand for eligible invisible transactions.

A statement by the apex bank on Monday said the $10, 000 sale was at the rate of N110/$1, adding that the BDCs are to sell to eligible customers at a spread of not more than 1.5 per cent above the purchase price.

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.”

The listed eligible BDCs have been directed to commence payment of the naira deposits into four CBN accounts, starting from April 8, 2024.

It also asked the operators to submit proof of payment and other documents at the appropriate CBN branches for disbursement.

The development comes following the sale of $10,000 to BDCs at a rate of N1,251/$ in March.

The CBN had directed the BDCs to sell to eligible customers at a rate not exceeding 1.5 per cent above the purchase price (N1,269/$1).

The Association of Bureau De Change Operators of Nigeria had earlier appealed to the CBN to adjust and lower its applicable exchange rate below the N1,251/$ it pegged for its members.

ABCON National President, Aminu Gwadabe, stated this in a letter to the CBN Director, Trade and Exchange Department.

The parallel market rate of 1,235/$ is lower than the BDCs’ applicable buying exchange rate of 1,251/$ (plus a 1.5 per cent margin) set by the CBN in its latest tranche of interventions.