CBN Instructs BDCs To Sell Dollar At N1,269

The Central Bank of Nigeria has disclosed the allocation of $10,000 to each Bureau de Change operator at N1,251/$.

This was disclosed in a circular made available to a correspondent and signed by the bank’s Director, Trade and Exchange Department, Dr Hassan Mahmud on Monday.

CBN directed each BDC to sell the dollars to eligible customers at a rate not exceeding 1.5 per cent above the purchase price, implying the BDCs are not expected to sell above N1,269/$1.

In a report, the CBN announced its decision to sell foreign exchange worth $20,000 to each eligible Bureau de Change operator across the country in February.

The naira maintained a steady increase against the United States dollar on Monday, gaining N14 to close at 1,408/$ at the official market.

According to the circular, “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 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/$1. The BDCs are to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price.”

Last month, the CBN Governor, Olayemi Cardoso, explained a comprehensive strategy targeted at curbing inflation, stabilising the exchange rate, and instilling confidence in the country’s banking system and economy.

Cardoso said, “All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off."

Analysts further explained that when a central bank enhances liquidity, it injects more money into the financial system, to help stabilise the foreign exchange market by providing more funds for buying and selling currencies.