The Central Bank of Nigeria (CBN) is selling $10,000 to BDCs at N1,101/$ and directed the operators to sell at a spread not more than 1.5 percent.
This new rate is lower than the March 25 price when CBN announced sales of foreign exchange to BDC operators at the rate of N1,251/$1 and instructed they must not sell at over 1.5 percent profit.
But the BDCs complained that the CBN rate was higher than what obtained on the open market and they would make losses complying with the bank’s markup of not more than 1.5 percent.
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With Monday’s new rate, BDCs are not expected to sell above N1,117/$1.
The apex bank disclosed its new move in a circular uploaded to its website on Monday, April 8, 2024.
Pegging its demand on the Naira’s speedy recovery, the Association of Bureaux De Change Operators of Nigeria (ABCON) had at the weekend urged the Central Bank of Nigeria (CBN) to reduce its applicable buying exchange rate downward.
This meant BDCs were not expected to sell above N1,269/$1.
But ABCON complained that this was the first time CBN’s applicable buying exchange rate at N1,251/$1 would be higher than the open market rate of N1,235/$1.
ABCON said the N1,251/$1 applicable buying exchange rate CBN pegged for bureau de change (BDC) operators would result in losses for its members, since the open market rate stood at the lower price of N1,235/$1.
ABCON President Aminu Gwadabe made the submission on behalf of the association in a letter to the CBN of Director, Trade and Exchange Department.
