CBN Orders BDCs to Sell Dollar at N1,269/$

In a recent circular, the Central Bank of Nigeria disclosed that Bureau De Change operators (BDCs) had been assigned $10,000 at N1,251/$1.

According to the circular released on Monday, the apex bank stated that all BDCs are mandated to sell the assigned dollars given to them to eligible customers at a rate not exceeding 1.5% above the purchase price. BDCs are expected to sell at a maximum of N1,269/$1.

However, CBN did not state how many BDCs got the distributed Forex allocation.

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This circular followed the naira's appreciation at the Nigeria Autonomous Foreign Exchange Market (NAFEM), which closed on Monday at N1,408.04 to the dollar, marking the start of its continued appreciation.

This shows a growth of N14.81 or 1.04% appreciation, compared to N1,422.85 to the dollar when trading began on the day.

The naira's appreciation can also be attributed to the CBN's recent policies, which are positioned to rescue the nation's currency, which has declined in value recently.

Following the measures implemented by the apex bank recently to address the naira-dollar challenge, the CBN moved to clear forex backlogs to give foreign investors confidence to increase their investments in the country further.

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% above the purchase price."

With this announcement, dollar sales to BDC operators have resumed following the central bank's long sanction in 2021. The ban was lifted earlier this year after the licences of more than 4,173 BDC operators were revoked in February.

Some financial experts have also applauded the federal government for certain monetary policies that have caused the naira to appreciate its value relative to the US dollar steadily, a report states.

The country's local currency appreciated after the Central Bank of Nigeria's (CBN) recent Monetary Policy Committee (MPC) meeting. On Monday, the naira traded N1,405 to the dollar at the official Nigerian Autonomous Foreign Exchange Market (NAFEM) window and N1,450 at the parallel market. The naira had dropped to an all-time low of N1900/$1.