CBN Directs BDCs to Adhere to Stricter Guidelines for Foreign Currency Sales

The Central Bank of Nigeria (CBN) has issued a decisive directive to Bureau De Change (BDC) operators, compelling them to adhere strictly to guidelines governing the sale of foreign currency.

In an effort to stabilize the exchange rate and minimize the impact of currency fluctuations, the CBN has mandated BDCs to provide dollars to eligible customers at a rate not exceeding N1,269 per US dollar. This directive, communicated through a circular signed by Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, is part of the apex bank’s comprehensive strategy to address the challenges posed by the FX crisis.

According to the new guidelines, each BDC has been allocated $10,000 at an exchange rate of N1,251 per US dollar. BDCs are required to maintain a narrow margin of 1.5% above the buying price when selling to end users.

In a statement, the CBN referenced a previous letter (TED/DIR/CON/GOM/001/071) approving a second tranche of FX sales to eligible BDCs. The CBN confirmed the sale of $10,000 to each BDC at the rate of N1,251/$1, instructing them to sell to eligible end users at a spread of not more than 1.5% above the purchase price.

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