Naira crisis: CBN sells $20,000 to BDCs at N1590 per dollar exchange rate

The Central Bank of Nigeria said it has sold foreign exchange worth $20,000 to eligible Bureau De Change operators at N1590 per dollar foreign exchange rate to tackle the FX crisis across the country.

This was disclosed by the apex bank in a circular signed by the Acting Director of Trade and Exchange Department, W. J Kanya, on Wednesday.

According to the CBN, the move will help operators meet retail market demand for eligible invisible transactions.

“This is to inform the Bureau De Change Operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market.

“To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,590/$. This is to meet the demand for invisible transactions,” it said.

This as the apex bank warned BDCs not to sell to Nigerians at a margin of not more than one percent above the N1590 per dollar purchase rate.

“All BDCs are allowed to sell to eligible end-users at a margin of NOT MORE THAN one percent above the purchase rate from CBN.

“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN Deposit Account Numbers with them.

“Also, payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN branches (Abuja, Awka, Kano, and Lagos) for collection of the $20,000.00. Please be guided accordingly,” the statement concluded.

The latest intervention of the central bank comes after the Nigerian naira dropped significantly on Wednesday to N1667.42 and N1705 per dollar at the official and parallel foreign exchange markets.

DAILY POST reports that this is the seventh intervention by CBN in the FX market in recent times.