Nigerians saving their dollars hold their handkerchiefs as CBN sells dollars to BDCs below market rate at N1,101/$1

The Central Bank of Nigeria (CBN) has issued a circular to Bureau De Change operators (BDCs), informing them of the sale of $10,000 to each BDC at a rate of N1,101/$1, NairaMetrics is reporting.

The CBN disclosed this in a circular, titled, ‘Sales of FX to Meet Retail Market Demand For Eligible Invisible Transactions’, dated April 8. The circular was addressed to the president of the Association of Bureau De Change Operators of Nigeria (ABCON).

The development comes less than a month after the announcement of the second tranche of sales on March 25. According to the circular, the regulator instructed each BDC operator to sell the dollars to eligible customers at a rate not exceeding 1.5 percent above the purchase price.

This means that BDCs are not expected to sell above N1,117/$1.
“We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1101/$1,” the document reads.

“The BDCs are in turn to sell to eligible end users at a spread of not more than 1.5 percent above the purchase price. All eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from Today Monday April 08, 2024, and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches.”

On April 6, ABDON urged the CBN to reduce its applicable buying FX rate downward due to the naira’s speedy recovery. The group said the N1,251/$ applicable buying rate the CBN pegged for BDC operators would result in losses for its members, as the open market rate stands at N1,235/$.