CBN sells $10,000 to BDC at N1,251/$1; gives fresh directive

CBN sells $10,000 to BDC at N1,251/$1; gives fresh directive

The Central Bank of Nigeria (CBN) has resumed the sale of foreign exchange (forex) to Bureau De Change (BDC) operators, issuing a circular informing them of the sale of $10,000 to each BDC at a rate of N1,251/$1.

The development comes after the CBN’s prolonged ban on forex sales to BDC operators.

In the circular signed by the bank’s Director of Trade and Exchange Department, Dr Hassan Mahmud, on Monday, each BDC is directed to sell the purchased dollars to eligible customers at a rate not exceeding 1.5 per cent above the purchase price, which translates to a maximum selling rate of N1,269/$1.

The CBN had previously announced its decision to sell foreign exchange worth $20,000 to each eligible Bureau De Change operator across the country in February, marking a significant shift from the policy implemented more than two years ago when the former CBN Governor, Godwin Emefiele, halted the sales of forex to BDC operators.

The circular from the CBN read, “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.”

The decision to resume selling to BDC operators is expected to provide easier access to forex for businesses and individuals alike, facilitate international transactions, and ease pressure on the naira.