FX crisis: CBN orders BDCs on how much to sell dollar

At an exchange rate of N1,251 per US dollar, the Central Bank of Nigeria, CBN, has given Bureau De Change, BDC, operators $10,000.

The CBN Director of Trade and Exchange Department, Hassan Mahmud, signed a circular disclosing this information.

The BDCs were directed by the top bank to provide dollars to eligible clients at a rate of no more than 1.5% over the buying price.

This suggests that it is not advisable for BDCs to sell for more than N1,269 for every $1.

Part of the circular says, “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB 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.”

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