CBN sells over $15m to BDCs at N1,251/$1

The Central Bank of Nigeria has issued a circular to Bureau De Change operators (BDCs), informing them that it has sold $10,000 to each BDC at a rate of N1,251/$1. At an estimated 1,500 BDC licenses remaining, it is estimated that over $15 million might have been sold into the retail end of the market. […]

The Central Bank of Nigeria has issued a circular to Bureau De Change operators (BDCs), informing them that it has sold $10,000 to each BDC at a rate of N1,251/$1.

At an estimated 1,500 BDC licenses remaining, it is estimated that over $15 million might have been sold into the retail end of the market.

Recall that the apex bank earlier resumed the sales of dollar  to BDC operators after a prolonged period of suspension, dating back to 2021. The ban was lifted following the revocation of licences of over 4173 BDC operators in February out of an  estimated 5,689 licenses.

In the circular, each BDC is instructed to sell the dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.

This suggest BDC are not expected to sell above N1,269/$1.

The circular reads in part: “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB 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.”

Investigations by Daily Trust reveal that the exchange rate continued on a downward trend, closing yesterday’s trade at N1408 at the NAFEM market and fell below N1,400/$1 in the parallel market after closing at N1,431/$1 on Friday.