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CBN begins forex sales to BDCs at N1,251/$1

 

The Central Bank of Nigeria (CBN) has issued a circular to Bureau De Change operators (BDCs), disclosing that each BDC has been allocated $10,000 at a rate of N1,251 per dollar.


According to the circular, which was issued on Monday, BDCs are required to sell the assigned dollars to qualifying clients at a cost no higher than 1.5 percent over the purchase price, implying that BDCs are expected to sell at a maximum of N1,269/$1.


The central bank, however, did not specify how many BDCs will receive the Forex allotment.


The circular states, “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.”


This announcement marks the resumption of dollar sales to BDC operators after a prolonged ban imposed by the central bank in 2021.


The ban was lifted earlier this year following the revocation of licenses of over 4,173 BDC operators in February.


 


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