Rédaction Africa Links 24 with Ayodeji Adegboyega
Published on 2024-04-08 11:30:23
The Central Bank of Nigeria (CBN) revealed on Monday that it sold $10,000 to each Bureau De Change operator at a rate of N1,101 per US dollar. This information was shared in a circular addressed to the President of the Association of Bureau De Change operators of Nigeria. The circular, signed by W.J. Kanya on behalf of the Director of the Trade and Exchange Department, also instructed each BDC to sell the dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.
The CBN stated, “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1101/$1. The BDCs are, in turn, to sell to eligible end users at a spread of NOT MORE THAN 1.5% above the purchase price. ALL eligible BDCs are directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from Today, Monday, April 08, 2024, and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches.”
Furthermore, the CBN advised all BDCs to continue adhering strictly to the market rules and conditions outlined in its earlier communications. Earlier, after the CBN sold dollars to the BDCs at N1,251, the Association of Bureaux De Change Operators of Nigeria made an appeal to the apex bank to review the rate downwards for its members. They pointed out that the parallel market rate of N1,235 was lower than the buying exchange rate and the 1.5% sales margin.
“We discovered a worrisome development where many of our members who paid for dollar allocations at N1,251/$ with a margin of 1.5% are yet to receive their disbursement. This is happening in the face of the prevailing open market rate of N1,235/$, which is lower than the authorised applicable exchange rate by the CBN to the BDCs,” the BDCs stated.
It is crucial for the BDCs to receive fair rates for their dollar allocations to ensure the smooth operation of their businesses. The CBN’s interventions in the foreign exchange market have a significant impact on the activities of BDCs, as they play a vital role in providing access to foreign currency for end users.
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In conclusion, the relationship between the CBN and BDCs is crucial for the stability of the foreign exchange market in Nigeria. By ensuring fair rates and transparent processes, both parties can contribute to a thriving economy. With continued adherence to market rules and conditions, the exchange of foreign currency can be conducted efficiently and effectively for the benefit of all stakeholders.
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