Business - Banking & Finance Updated: March 25, 2024

CBN to crash FX rate, sells $10,000 to BDC at N1,251/51

By Adekunle Obas
March 25, 2024

In a move aimed at further stabilizing the foreign exchange (FX) rate, the Central Bank of Nigeria (CBN) has initiated the second phase of foreign exchange sales to eligible Bureau De Change (BDC) operators to address retail market demand.

In a memorandum issued on Monday to the President of the Association of Bureau De Change Operators of Nigeria, the CBN announced the sale of $10,000 to each BDC at a rate of N1,251.51.

The CBN emphasized that BDCs are required to sell to eligible end-users with a margin of no more than 1.5 percent above the purchase price.

Dr. Hassan Mahmud, Director of the Trade & Exchange Department, issued a memo (reference TED/DIR/CON/GOM/001/072) dated March 25, 2024, directing all eligible BDCs to make Naira payments to specified CBN Naira Deposit Account Numbers by the close of business on Thursday, March 28, 2024. Additionally, BDCs must submit payment confirmations and other necessary documentation for disbursement at designated CBN branches.

The memo titled "Sales of FX to BDCs to meet retail market demand for eligible invisible transactions" stated, "We refer to our previous communication referenced TED/DIR/CON/GOM/001/071 regarding the sale of FX to eligible BDCs. We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251.51. The BDCs are to sell to eligible end users at a spread of not more than 1.5 percent above the purchase price."


The CBN cautioned that any BDC found violating the stipulated terms would face appropriate sanctions, potentially including suspension from further participation in the sales.

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