CBN sells dollars to BDCs at N1,450/$1

The Central Bank of Nigeria on Thursday disclosed that it sold $20,000 to each Bureau De Change operator at a rate of N1,450 per U.S. dollar.

The bank disclosed this in a circular addressed to the President of the Association of Bureau De Change operators of Nigeria and the general public.

In the circular, signed by the Acting Director of the Trade and Exchange Department, AA Mahdi, the CBN also instructed each BD to sell the dollars to eligible customers at a rate not exceeding 1.5 per cent above the purchase price.

“Following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widen the exchange rate premium.

“To this end, the CBN has approved the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day),” it said.

It directed all eligible BDCs to make the Naira payment to the listed CBN Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches — (ABUJA, AWKA, KANO and LAGOS).

Meanwhile, the naira traded at a high of N1,620 on the official market on Wednesday, closing at N1,581.26/$1, depreciating by 0.32 per cent at the NAFEM window.

In an interview with Bloomberg TV, the Governor of the Central Bank, Yemi Cardoso, said that the country has already experienced the worst of naira volatility.

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“I do believe that we have more or less seen the worst in terms of volatility. We are also very alive to observing the way and manner in which that market operates and ensuring that it gives the best value that can be accomplished using certain tools,” he said.