CBN’s Fresh Dollar Sales To BDCs Crashes Naira To N1,250/$1

The Central Bank of Nigeria’s recent decision to sell US dollars to Bureau De Change (BDC) operators at a discounted rate of N1,021 per dollar has resulted in a strengthening of the Naira to N1,250 against the US dollar.

This move marks the fourth time in 2024 that such direct sales have been made to BDCs, aiming to stabilize the Naira’s value amidst recent fluctuations in the forex market.

The Central Bank of Nigeria (CBN) has issued a new circular to Bureau De Change (BDC) operators, revealing its plan for a direct sale of US dollars at a discounted rate of N1,021 per dollar.

VerseNews reports that this move marks the second sale for April and the fourth time in 2024, indicating efforts to stabilize the naira amidst recent fluctuations.

In the circular addressed to BDCs, the CBN outlined the terms of the sale, instructing eligible operators to commence payment of the Naira deposit to specified CBN accounts for the disbursement of FX.

The directive emphasizes a spread not exceeding 1.5 percent above the purchase price for end-users.

“We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1. The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.

“ALL eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from today, Monday April 22, 2024, and submit confirmation of payment, with other necessary documentations, for disbursement of FX at the respective CBN Branches,” the circular reads,

This initiative follows previous interventions by the CBN to support the naira’s value, including February’s sale of $20,000 to each BDC at N1,301/$ and April’s sale of $10,000 at N1,101/$.

The bank’s proactive measures aim to mitigate currency devaluation and promote stability in the foreign exchange market.