CBN Continues Dollar Sales to BDCs for 3rd Consecutive Month at N1,101/$1

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In a bid to maintain stability in the foreign exchange (FX) market, the Central Bank of Nigeria (CBN) has announced its third consecutive month of dollar sales to Bureaux De Change (BDC) operators.

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The CBN outlined the details of the latest intervention in a letter to the President of the Association of Bureau De Change Operators of Nigeria (ABCON). Under this intervention, each of the 1,588 participating BDCs will receive $10,000 at a fixed rate of N1101 per US dollar.

BDCs are authorized to sell these dollars to eligible end-users with a spread capped at 1.5 percent above the purchase price from the CBN, approximately N1,116.15 per dollar, limiting potential profits on each transaction.

The CBN instructed eligible BDCs to immediately commence payment of the Naira equivalent for their dollar allocation, providing specific CBN Naira Deposit Account Numbers for payment facilitation.

Following payment, BDCs are required to submit payment confirmation and necessary documentation to their designated CBN branch to receive their dollar allocation.

The CBN reiterated the importance of BDCs adhering to established rules and regulations, emphasizing transparency and responsible conduct within the FX market.

An official of the CBN highlighted that the continued dollar sales aim to address potential FX shortages at the retail level, stabilize the exchange rate, and improve FX accessibility for individuals and small businesses.

While the fixed exchange rate and limited spread offer predictability for BDCs, concerns have been raised about potential currency manipulation and long-term sustainability of these interventions.

Dr. Wahab Balogun, CEO of Ambosit Capital Managers, expressed concerns over artificial manipulation of the exchange rate and depletion of foreign exchange reserves. He proposed a more flexible exchange rate determined by market forces as a sustainable long-term solution.

The effectiveness of these interventions and their impact on the Nigerian economy will be crucially evaluated in the coming months.


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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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