CBN Sells $10,000 to 1583 BDCs at N1,021

The Central Bank of Nigeria (CBN) has offered to sell $10,000 to 1,583 Bureau de Change (BDCs) operators in the informal currency market. The authority is asking currency traders to deposit the equivalent of $10,000 into its deposit accounts for the onward distribution of US dollars.

The apex bank said in an official statement released on its website that the amount is expected to meet demand at the retail end for invisible transactions.   The CBN said the BDCs that benefited from the US dollar sales should sell to FX users at spread not more than 1.5% above the purchase price.

Following a decline in forex liquidity on Monday at both the official and parallel markets, the value of the naira fell sharply. The local currency depreciation started last week as the apex bank denied claim that the authority is using external reserves to defend the naira.

According to the notice, the CBN directed the BDCs to commence payment of the naira equivalent to the CBN Naira deposit account numbers.

“The FX sales to BDCs would support the naira’s recovery from the recent losses. To maintain the strength of the naira, the market requires US dollar liquidity; otherwise, the exchange rate might spiral out of control, analysts told MarketForces Africa. #CBN Sells $10,000 to 1583 BDCs at N1021 WPG Sacked Former MD of Eko Disco

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