CBN Crashes Dollar To N1,269/$ At Black Market With $10,000 Sale To BDCs

The Central Bank of Nigeria has crashed the price of the dollar to N1,269 with the sale of $10,000 to all qualified Bureau De Change Operators.

The CBN, in a circular referenced TED/DIR/CON/GOM/001/072, said it would be selling $10,000 to qualified BDC operators at the rate of N1,251 per dollar.

The circular directed to the Association of Bureau de Change Operators of Nigeria said the beneficiaries are not allowed to sell above 1.5 percent of the purchase price.

At 1.5 per cent spread, the apex bank expects BDCs to sell at N1,269.8

“We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB 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.

“All eligible BDCs are directed to make the naira payments to the underlisted CBN naira deposit account number 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.”

The CBN threatened to sanction any BDC that breaches the terms.

The apex bank said the sanction may include “outright suspension from further participation in the sale.”

Recall that the CBN had in a circular dated February 27, 2024 with reference number TED/DIR/CON/GOM/001/066, signed by CBN’s Director, Trade and Exchange Department, Dr. Hassan Mahmoud, approved $20,000 weekly sale to operators.

The list of approved BDCs obtained by THE WHISTLER revealed that only 1,342 qualified for the intervention out of the 5,691 BDCs approved by the CBN.

The circular said, “The CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20.000 is to be sold to each BDC at the rate of N1,301/S – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day. as at today. 27th February 2024).”