CBN Sells $20,000 Each to BDCs at N1,450, Caps Margin
The Central Bank of Nigeria (CBN) has approved sales of US$20,000 each to eligible Bureau de Change operators (BDCs) under its regulatory radar.
The move by the apex bank was to stem the negative exchange rate movement in the parallel market in the recent times. The naira was sold near N1,600 in the black market earlier today due to US dollar scarcity.
The CBN had paused FX sales at subsidised rate to currency traders in the informal market since April, Today’s FX sales to BDCs is the first time in 3-Months.
“Following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the Naira, the CBN has observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widen the exchange rate premium.
“To this end, the CBN has approved the sales of FX to-eligible Bureau De Change (BDCs) to meet the demand for invisible transactions”, the apex bank said in a circular.
The notice stated that the sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ – representing the lower band of the trading rate at NAFEM in the previous trading day.
The apex bank said it allowed BDCs to sell to eligible end-users at a margin more than one point five percent (1.5 %) above the purchase rate from CBN. #CBN Sells $20,000 Each to BDCs at N1,450, Caps Margin
