Naira Rebound To N1,400, CBN Clearing Of FX Backlogs Not Yet Time For Celebration - Expert  

CBN Sells Dollars At ₦1,252/$1 To BDCs, As Naira Value Rises Further

3 weeks ago
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In its bid to increase liquidity in the foreign exchange market, the Central Bank of Nigeria (CBN) has announced second tranche of dollar sales to eligible Bureau de Change (BDC) operators at the rate of ₦1,251/$1.

The CBN said this is to help meet retail market demands for eligible invisible transactions.

This was disclosed in a letter dated 25 March 2024, signed by Dr Hassan Mahmud, Director, Trade and Exchange Department, CBN, addresssed to the Association of Bureau de Change Operators of Nigeria.

Dr Mahmud said the apex bank has approved sale of $10,000 to each eligible BDC.
According to the letter, the CBN mandated BDCs to sell dollars to “eligible end users” at a spread of not more than 1.5 per cent above the purchase price.

The letter reads: “We refer to our letter to you referenced TED/DIRICON/GOM/001/071 in respect of the above subject wherein the CBN 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/S$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.”

To be able to access the FX, Mahmud said all “eligible BDCs are directed to make the Naira payment to the underlisted CBN Naira Deposit Account Numbers before close of business on Thursday March 28, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches.”

He warned that “any BDC that breaches above terms shall be sanctioned appropriately, including outright suspension from further participation in the sale.”

Prime Business Africa had reported that the CBN on February 27 announced resumption of sales of FX to BDCs. In the first tranche, it allocated $20,000 dollars to each eligible BDC at the reduced rate of N1,301/$. The rate represented the lower band rate of executed spot transactions at NAFEM for the previous trading day.

The measure is to ensure adequate supply of dollars to the forex market at a lower rate and ensure that speculators do not have the opportunity to reap off end users thereby affecting value of the naira which the CBN has been battling to save with a number of monetary policy measures.

Naira Rises Further To ₦1,408/$1 At Official Market

Prime Business Africa reports that the naira further strengthened its value on Monday maintaining ₦1,400 marks since Wednesday, 20 March 2024 when it appreciated to ₦1,492.61/$1.

READ ALSO: Forex: Naira Ends Week On Positives Note With N1,431/$ At Official Market

At the close of trading on Monday, 25 March, the naira to dollar exchange rate was ₦1,408/$1 at the official market. This reflects ₦23.39 or 1.64 per cent gain when compared to ₦1,431.49/$1 recorded on Friday, 22 March, according to Nigerian Autonomous Foreign Exchange Market (NAFEM), data published by the FMDQ Securities Exchange Limited.

The data further indicated that there was an intraday high of ₦1,442.00, and a low of ₦1,300. Daily forex turnover recorded was $221.80 million an increase of $22.1 million or 11.1 per cent from $199.7 million recorded on Friday.

Correspondent at Prime Business Africa | + posts

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.


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