The Central Bank of Nigeria (CBN) has further lowered the foreign currency (FX) rate for dollar allocations to Bureau de Change (BDC) operators.
On Tuesday, the CBN said in a circular signed by Hassan Mahmud, director of, the trade and exchange department, that it had sold $10,000 at a rate of N1,021/$ to each BDCS.
The circular, headlined ‘SALE OF FX TO BDCs TO MEET MARKET DEMAND (RETAIL-END) FOR INVISIBLE TRANSACTIONS’, was issued to the president of Nigeria’s Association of Bureau De Change Operators (ABCON).
CBN said:
“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 commerce payment of the Naira deposits to the underlisted 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.”
The announcement came after the CBN denied that it had decreased the rate for FX allocations to BDCs to N1,001 per dollar.
The CBN has been selling foreign exchange to BDCs at rates lower than those set by the official and parallel markets.
The current discount comes at a time when the naira’s gain in both FX markets has stalled, with the parallel section trading at N1,260 per dollar on April 22, down from N1,230/$1 on April 19.
During the same period, the naira fell to N1,234.49 per dollar from N1,169.99/$ at the official window.
On April 8, the CBN supplied foreign exchange to BDCs at a rate of N1,101/$, compared to the N1,251/$ offered to parallel market operators on March 25 and the N1,301/$ announced on February 27.