See new exchange rate as CBN crashes dollar with another sales

2 months ago 107

The Central Bank of Nigeria has again announced another round of dollar sales to licensed Bureau De Change Operators
The move is part of the apex bank's efforts to halt the depreciation of the naira in the foreign exchange markets
The CBN has a fixed exchange rate limit for the BDCs when reselling cheap dollars to Nigerians

Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.

The Central Bank of Nigeria has announced plans to sell $20,000 in foreign exchange to eligible Bureau De Change operators nationwide.

The apex bank disclosed this in a statement titled "Sales of foreign exchange to BDCs to meet retail market demand for eligible invisible transactions" signed by the Acting Director of Trade and Exchange Department, Dr W. J Kanya.

CBN dollar sales to Bureau de Change operators

According to a new circular released on Wednesday, September 25 the apex bank said the qualified BDC operators would get the chance to buy at the rate of N1,590/$.

The rate is N77.42 cheaper than the official exchange rate, which closed at N1667.42 on Wednesday, September 25, 2024.

Also, a BDC trader told Legit.ng that on Thursday, the naira in the parallel market sold at N1,697 against the dollar

CBN gives instructions to BDCs

The CBN, in the circular, said the sale of the dollar will help operators meet retail market demand for eligible invisible transactions.

The apex bank, however, gave firm instructions that the beneficiary BDCs must not sell the allocated dollars to eligible customers at a rate not exceeding more than N15.59 profit on each dollar they sell to their customers.

The circular reads:

"This is to inform the Bureau De Change (BDC) 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."All BDCs are allowed to sell to eligible end-users at a margin of NOT MORE THAN one percent (1%) 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 US$20,000.00. (ABUJA, AWKA, KANO).