CBN directs Bureau De Change to sell 1$ for N1,269

A circular recently released by the Central Bank of Nigeria, CBN, has directed Bureaux de Change, BDCs, specifying the terms of foreign exchange (FX) sales and exchange rate limits.

Accordingly each BDC has been allocated $10,000 at a rate of N1,251 per US dollar.

The directive further stipulates that BDCs are required to sell the allocated dollars to eligible customers at a rate not exceeding 1.5% above the purchase price. This effectively caps the selling rate for BDCs at N1,269 per US dollar.

The circular, referencing a previous communication (TED/DIR/CON/GOM/001/071), highlights the CBN’s approval of a second tranche of FX sales to eligible BDCs. It explicitly states, “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.”

This move by the CBN appears to be aimed at regulating the foreign exchange market and ensuring stability in currency exchange rates. By setting clear guidelines for BDCs, the CBN aims to prevent speculative activities and maintain a controlled flow of foreign currency in the market.

Market participants and stakeholders are expected to adhere to the directives outlined in the circular as the CBN continues its efforts to manage foreign exchange dynamics in Nigeria.