CBN, Again Limits Sale Of Foreign Exchange Cash To BDCs
Central Bank of Nigeria[/caption]
In a bid to frustrate Bureau De Change (BDC) operators from accessing foreign currencies, the Central Bank of Nigeria, CBN has introduced a new limit of $30, 000.00 per week for the sale of foreign exchange cash from the Authorised Dealers, ADs to BDCs.
In a circular with reference; TED/FEM/FPC/GEN/01/006 signed by the CBN’s Acting Director of Trade & Exchange Department, W.D. Gotring, the Apex Bank stated that authorised Dealers shall sell foreign exchange cash to BDCs subject to a maximum of $30,000.00 per week.
The circular titled, Re: Sales of Foreign Currency Proceeds of International Money Transfers to Bureaux De Change Operators, further noted that “a BDC shall nominate its preferred Authorised Dealer (DMB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.
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“The selling rate by the Authorised Dealers to BDCs shall be the buying rate from International Money Transfers Operators, IMTSOs plus a margin not exceeding 1.5 per cent; Foreign exchange cash purchased by BDCs from Authorised Dealers (Ads) shall be sold to foreign exchange end-users at a rate not exceeding two per cent margin above the buying rate; For the avoidance of doubt, the two per cent margin stated shall be applicable to all funds to be retailed by BDCs regardless of source of fund; Authorised Dealers shall continue to render weekly returns on sales to BDCs and the BDCs shall also continue to render weekly returns on purchases from ADs as specified in the attached excel format to Trade & Exchange Department, CBN , Abuja.”
Other requirements in the circular include: “Funds purchased by BDCs shall be disbursed for the following eligible transactions only. In all cases, the maximum disbursement per transaction shall not exceed $5,000.00 for (a) Business Travel Allowance/ Personal Travel Allowance (b) Overseas School fees and (c) Overseas Medical fees.
“Record shall be maintained for all transactions by the BDCs showing the BVN of the end-user, including endorsement of the amount disbursed in the International Passport of the beneficiary; International Money Transfer Service Operators shall continue to render weekly returns on their operations with agent banks directly to the CBN as specified in the attached format.; All BDCS are required to render weekly returns on foreign exchange purchases from Autgorised Dealers and other sources as well sales to the Director, Trade and Exchange Department as specified in the attached excel format.”
The apex bank also warned Authorised Dealers to refrain from accessing its Discount Window on the settlement date for government securities’ auctions.
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The securities are CBN Bills, Nigerian Treasury Bills and Federal Government of Nigeria Bonds.
Meanwhile, the naira traded at an all-time low of 350 to the dollar in a single interbank market. The currency was offered at N313 naira to the dollar and a total of $3.11 million had been traded
