CBN slashes BDC exchange rate to N1,270/$

cover, Financial Markets

The Central Bank of Nigeria, CBN, yesterday slashed the exchange rate in the Bureaux De Change, BDC, segment of the forex market by 3.4 per cent or N50.5 to N1,269.8 per dollar even as it commenced another round of dollar sale to eligible BDCs.

Earlier in February, CBN sold $20,000 to each of 785 BDCs at N1,310 per dollar, directing the BDCs should sell

to end users at a spread of not more than 1.0 percent of purchase price or N1,314.01 per dollar.

But yesterday, the apex bank announced it will sell another $10,000 to each BDCs at exchange rate of N1,251 per dollar directing that the BDCs should sell

to end users at a spread of not more than 1.5 percent of purchase price or N1,263.51 per dollar.

Announcing the slash in BDC exchange rate in a letter to the President of Association of Bureaux De Change Operators of Nigeria, ABCON, Dr. Hassan Mahmud Director, Trade & Exchange Department of CBN, said: “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/$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.

“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:

“Please note that any BDC that breaches above terms shall be sanctioned appropriately, including outright suspension from further participation in the sale.”