BREAKING: CBN Forced To Sell $20,000 To BDCs As Naira Crashes To N1,710/1$
2 years ago 2 min read
Share:
The Central Bank of Nigeria (CBN) has said that it will intervene in the foreign exchange market through fresh $20,000 dollar sales to eligible Bureau de Change dealers in the country.
The lender said this in a circular, TED/FEM/PUB/FPC/001/028, released on Thursday and seen by THE WHISTLER.
The circular which was addressed to both BDCs and the public was titled, ‘Sales Of Foreign Exchange To BDCs To Meet Retail Market Demand For Eligible Invisible Transactions.’
The apex bank took the decision following further depreciation of the naira across foreign exchange windows despite several interventions.
THE WHISTLER reported that the currency fell on the Bureau de Change segment of the Nigerian Foreign Exchange Market from N1,675 on Tuesday to N1,695 per dollar by noon on Wednesday.
The situation became worse as the currency depreciated further to N1,710 per dollar at the close of trade on Wednesday.
The weighted average of the naira used by the CBN to transact fell from N1660.33 on Tuesday to N1667.22 per dollar on Wednesday.
Consequently, the apex bank said on Thursday that it has approved fresh dollar sales to BDCs at N1,590 per dollar.
The circular reads, “This is to inform the Bureau De Change (BDC) Operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market.
“To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,590/$. This is to meet the demand for invisible transactions.”
The bank further directed beneficiaries not to sell above 1 per cent spread.
“All BDCs are allowed to sell to eligible end-users at a margin of not more than one percent (1 per cent) above the purchase rate from CBN.
“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN Deposit Account Numbers with them,” the apex bank added.
