CBN crashes dollar again, sells to BDC operators at N1,269/$1, fixes resale exchange rate

The Central Bank of Nigeria has issued a circular addressed to Bureau De Change operators (BDCs), revealing that each BDC has been allocated $10,000 at a rate of N1,251/$1.

According to the circular, which was released on Monday, the BDCs are mandated to sell the allocated dollars to eligible customers at a rate not exceeding 1.5 per cent above the purchase price, indicating that BDCs are expected to sell at a maximum of N1,269/$1.

The central bank failed to state how many BDCs got the Forex allocation.

This is as the value of the naira resumed its appreciation on the Nigeria Autonomous Foreign Exchange Market (NAFEM) closing on Monday at N1,408.04 to the dollar.

This is N14.81 or 1.04 per cent appreciation compared to N1,422.85 to the dollar when it began the day’s trading activities.

The appreciation is connected to the CBN’s recent policies aimed at rescuing the nation’s currency that has nosedived in value in recent times.

Recently, the apex bank cleared the dollars backlog, in a move to give confidence to foreign investors to further increase their level of Investments in the country

The circular states, “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 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.”

This announcement marks the resumption of dollar sales to BDC operators after a prolonged ban imposed by the central bank in 2021. The ban was lifted earlier this year following the revocation of licences of over 4,173 BDC operators in February.