CBN Sells US Dollar to BDCs at N77.42 Discount
The Central Bank of Nigeria (CBN) has moved to provide discounted US dollar sales to the Bureau de Change (BDC) operators as exchange rate wobbled. In the official FX market, the naira fell to N1667.42 while the exchange rate settled at N1675 per US dollar.
Both rates have already touched the central bank ‘fear index’ where the authority reacts with market invention and maintains its cool at rates below these levels in the currency markets.
In a statement, the apex said it has approved 20,000 US dollar sales to Bureau de Change (BDC) operators in the informal currency market at a rate of N1590, which is N77.42 official exchange rate on Wednesday.
In the parallel market, the naira fell from N1,660 to close the trading session at N1,675 to the US dollar as demand for invisible FX payments continues to increase.
After keeping the market participant guessing about its next move, the CBN move to boost FX liquidity to meet retail market demand for eligible invisible transaction in the parallel market.
“This is to inform the Bureau De Change (BDC) Operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market.
“To this end, the CBN has approved the sale of US$20,000.00 to each eligible Bureau de Change operator at the rate of N1,590. This is to meet the demand for invisible transactions,” the apex bank said in a statement.
According to the statement, all BDCs are allowed to sell to eligible end-users at a margin of not more than one percent (1%) above the purchase rate from CBN. #CBN Sells US Dollar to BDCs at N77.42 Discount CBN Defends Naira with $39m in Forex Market
