CBN sells dollars to BDCs at N1,021/$ as naira falls

Onwubuke Melvin
Onwubuke Melvin

The Central Bank of Nigeria has issued a circular to all Bureau De Change operators, detailing a new initiative to directly sell US dollars to BDCs at a reduced rate of N1,021 per dollar.

This initiative underscores the proactive strategy of the Central Bank to manage currency volatility and to ensure the availability of essential foreign exchange.

The Central Bank of Nigeria initially gave 20, 000 dollars to each BDC in February 2024, at the rate of N1,301 per dollar, but further adjustments were made and the rate was reduced to N1,251 per dollar in the second disbursement.

The circular read, “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1. The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.

“ALL eligible BDCs are therefore directed to commence payment of the Naira deposit to the under listed CBN Naira Deposit Account Numbers from today, Monday, April 22, 2024, and submit confirmation of payment, with other necessary documentations, for disbursement of FX at the respective CBN Branches.”

Recall that the exchange rate between the Naira and Dollar declined to a week-to-date low of N1,234.49/$1 on the official NAFEM window Monday.

This is a significant decline from the official exchange rate of N1,169.99/$1 recorded on Friday 19th of April 2024.

Naira had surged in March, which made it the best-performing currency in the world, but experienced a decline on Sunday when it had its first weekly depreciation in several weeks on the parallel market.

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