Jubilation as CBN Crashes Dollar Price for BDCs, Sets New Rate to Sell to Nigerians

• The Central Bank of Nigeria (CBN) has crashed the buying rate of the dollar for BDCs to a new low
• The apex bank sold $10,000 FX to each BDC at N1,101 per dollar, below the N1,251 it sold at the beginning of the month
• The bank gave instructions to the operators not to sell the FX above the recommended rate of 1.5%

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has further crashed the dollar buying rate for Bureau de Change operators (BDCs) to N1,101 per dollar.

The move comes a few days after the BDC operators requested a review of the buying rate of the dollar by the CBN.

BDCs get the dollar at a new price from CBN

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According to a new circular seen by Legit.ng, the apex bank announced the sale of $10,000 to each BDC at N1,101 per dollar, asking them to sell at least the 1.5% rate to buyers.

The development means that the BDCs are expected to the dollar at a new rate of N1,117 per dollar, below the selling rate of N1,251 per dollar recorded in the first week of April 2024.

The development comes as the naira appreciated N1,251.05 per dollar in the official window and N1,245 in the parallel market.

Naira appreciates as BDCs request new rates

The official window performance as of Friday, April 5, 2024, is the exact amount the apex bank sold FX to the BDCs at the beginning of the month, prompting the current review.

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Currency dealers, banks sell dollar at new rates after CBN crashed forex to N1,101 per dollar

In a previous report by Legit.ng, the Association of Bureaux de Change Operators of Nigeria (ABCON) asked the Central Bank of Nigeria (CBN) to reduce its buying rate for the US dollar to hasten recovery.

ABCON revealed that the N1,251 per dollar buying rate that the CBN pegged for the dealers would result in losses for its members, as the naira currently trades at N1,235 per dollar in the open market.

The currency dealers disclosed this in a letter signed by ABCON President Aminu Gwadabe, addressed to CBN’s trade and exchange department director.

The apex bank recently announced the second phase of sales of Forex to BDCs at N1,251 per dollar.

Reports say the association said it is the first time that the buying rate for CBN will be higher than the open market value.

Naira performs better in black market

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Legit.ng reported that the Nigerian currency had continued its upward swing against the US dollar for the fourth consecutive week since its devaluation in January 2024.

The naira appreciated about N245 per dollar in the parallel market against the US greenback, prompting currency dealers to ask the Central Bank of Nigeria (CBN) to review the price at which it sells dollars.

The Nigerian currency has continued its upward swing against the US dollar for the fourth consecutive week since its devaluation in January 2024. The naira appreciated about N245 per dollar in the parallel market against the US greenback, prompting currency dealers to ask the Central Bank of Nigeria (CBN) to review the price at which it sells dollars.

Source: Legit.ng