CBN Sells Dollar at N1,580 to BDC Operators, Sets Resale Exchange Rate
- The CBN has approved the sale of forex to BDC operators at an exchange rate of N1,580 per US dollar
- This latest move is part of the CBN's efforts to stabilize the naira following recent depreciation in both the official and unofficial markets
- There are 46 authorized dealers, and the CBN hopes that the new liquidity will help the naira bounce back
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has resumed the sale of forex to Bureau de Change operators as it aims to stabilise the exchange rates.
In a circular signed by W.J Kanya, the acting director of the trade and exchange department, on Friday, September 6, the CBN stated that each BDC operator is eligible to purchase $20,000 in foreign exchange (FX).
Source: Getty Images
The directive further stipulated that all BDCs are permitted to sell FX to eligible end-users at a margin of no more than 1% above the purchase rate set by the CBN.
The CBN also instructed interested and eligible BDCs to make their naira payments using the CBN deposit account numbers assigned to them.
It read;
“This is to inform the Bureau De Change (BDC) Operators and the general public that we are providing more liquidity into the market.
"To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,580/$.
“This is to meet the demand for invisible transactions. 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 US$20,000.00.”
Reacting to the development, the President of ABCON, Aminu Gwadabe, who has consistently advocated for the CBN to work with BDCs to stabilize the dollar, said:
"The new CBN Quantanomics model to arrest volatility is one of its kind. CBN should keep the model flying. BDCs remain the elixir."
Naira bounces back at official market
In a related development, Legit.ng reported that the naira has appreciated in value against the dollar in the official foreign exchange markets.
This good performance of the naira came as the Central Bank of Nigeria increased the dollar supply to the market.
The naira has been under demand pressure for dollars for days and has failed to appreciate for five straight days.
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Source: Legit.ng
