Central Bank of Nigeria moves to crash FX rate, sells $10,000 to each BDC at N1,251/51

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In a bid to further crash the FX rate, the Central Bank of Nigeria (CBN) has begun the sales of the second tranche of foreign exchange (FX) to eligible Bureau De Change (BDCs) to meet retail market demand.

In a memo on Monday to the President Association of Bureau De Change Operators of Nigeria the apex bank informed of the sale of $10,000 to each BDC at the rate of N1,251/51.

The CBN cautioned that BDCs are to sell to eligible end users at a spread of not more than 1.5 per ent above the purchase price.

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Dr. Hassan Mahmud, Director, Trade & Exchange Department in a memo reference TED/DIR/CON/GOM/001/072 and dated March 25, 2024 directed all eligible BDCs to make the Naira payment to a listed CBN Naira Deposit Account Numbers before close of business on Thursday March 28, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches.

The memo titled “Sales of FX to BDCS to meet retail market demand for eligible invisible transactions”, reads in part: “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CBN 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 N1,251/51. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.

“ALL eligible BDCs are directed to make the Naira payment to the underlisted CBN Naira Deposit Account Numbers before close of business on Thursday March 28, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches.”

The CBN warned that any BDC that breaches stated terms shall be sanction appropriately, including outright suspension from further participation in the sale.