CBN approves a new exchange rate for BDCs
The Central Bank of Nigeria (CBN) has given its approval for the daily sales of $10,000 to 1,588 eligible Bureau de Change operators at an exchange rate of ₦1,101 to the dollar.
The BDC operators anticipate selling the dollars to eligible end users at a spread of no more than 1.5% over the purchase price.
In a letter sent to the President of the Association of Bureau De Change Operators (ABCON) on Monday in Abuja, the Director of Trade and Exchange Department of the CBN, W.J. Kanya, made the following statement:
The letter anticipates that the BDC operators will sell the dollars to eligible end users with a spread that does not exceed 1.5% above the purchase price. We have instructed all eligible BDCs to make the Naira deposit payment at the CBN Naira deposit account starting Monday.
The statement emphasized that BDCs should continue adhering to the rules and conditions outlined in our previous circulars.
According to the News Agency of Nigeria (NAN), ABCON President Aminu Gwadabe recently appealed to the apex bank to reduce the exchange rate it has set for BDCs, which currently stands at ₦1,251 to the dollar.
Gwadabe expressed concern over the increasing cost of $1,251 per dollar for the BDCs. He expressed his dissatisfaction following recent events in the foreign exchange market, where the parallel market rate of ₦1,235 to the dollar fell below the official rate of ₦1,252 to the dollar.
According to his statement, the BDCs were experiencing financial losses.
By Nnaemeka Odenigbo
