CBN approves sale of FX to BDC at N1,251/$

•Dealers to give endusers at less than N1270/$

The Central Bank of Nigeria (CBN) has informed the Bureau de Change (BDC) operators of approval of the sale of $10,000 to each BDC at a rate of N1,251/$.

Under the new operating rule, BDC operators are to sell to endusers at not more than 1.5 per cent margin, suggesting that endusers could get dollar at less than N1270/$.

The information was contained in a circular signed by the bank’s Director, Trade and Exchange Department, Dr Hassan Mahmud, on Monday.

Funding of BDC comes over two years after the CBN under Godwin Emefiele stopped financing BDC operators, who the bank accused of market manipulation.

Retail FX operation was handed over to deposit money banks (DMBs). The Guardian had reported that the banks resorted to round-tripping while endusers were tossed to the mercy of profiteering traders.

“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 $10,000 to each BDC at the rate of N1,251/$. The BDCs are to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” the latest circular read.

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