CBN Warns BDCs Against Selling FX Above N1,269/$1, Threatens To Sanction Errant Operators

The Central Bank of Nigeria (CBN) Monday announced that it has sold $10,000 to each of the eligible Bureau De Change (BDC) operators in the country at the rate of N1,251/$1.

This is even as the apex bank warned that any BDC that sells above the approved rate shall be sanctioned appropriately, including outright suspension from further participation in the sale”.

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This development was contained in a circular to the President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe on Monday, the apex bank said the BDCs are to sell to eligible end users at a spread of not more than 1.5% above the purchase price. Hence the BDCs are not allowed to sell above N1,269/$1.

The circular signed by the bank’s Director of Trade and Exchange Department, Hassan Mahmud reads “We refer to our letter to you referenced TED/DIR/CON/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/$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.”

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