EXCLUSIVE: CBN To Resume $20,000 Weekly Dollar Intervention To BDCs On Monday, Abandons Willing Buyer, Willing Seller Policy

Following pressure on the naira, the Central Bank of Nigeria (CBN) will resume its weekly dollar intervention to qualified Bureau de Change Operators (BDCs). This time, the apex bank will give BDCs about $20,000 per week, THE WHISTLER can exclusively report.

THE WHISTLER learnt from a reliable document that the intervention will be done through bank accounts of qualified BDCs and they are to sell electronically to customers in need of BTA/PTA and also in cash.

A memo sent by the ABCON reads, “In furtherance to our various engagements with the Central bank, the Apex bank in conjunction with our strategic partners have agreed to our request under their supervision to inject liquidity into our sub-sector through a weekly intervention starting on Monday 26/02/2024 for funding and collection on Tuesday 27/02/2024.

“The collection will be at designated CBN branches in Lagos, Abuja, Kano and Awka respectively. The details of the naira account to be credited for funding bidding will be made available on Monday.

“The CBN is also coming up with eligible BDCs on Monday unfailingly based on certain compliance criteria.”

A virtual meeting was held on Sunday by approved BDCs to deliberate on the new development. THE WHISTLER understands from a reliable source that the CBN will intervene twice a week.

A source said, “It is true that CBN is going to start intervention again from tomorrow Monday, February 26, 2024. They will start giving BDCs money. The interventions will be Wednesdays and Fridays and the amount is $10,000 for each day.”

THE WHISTLER understands that the intervention will be for BDCs that are up to date with their annual subscription and filling of monthly returns.

BDC operators that did not pay annual renewal fees and submit audited reports for 2022 will not be part of the intervention from the apex bank.

“The BDCs who are current with regulatory compliance as of 2023 will qualify for the intervention. Unlike before, the BDCs were allowed to sell to any customer, but with the new intervention, BDCs will sell only to people who are going to school, and medicals- that is BTA/PTA as the case may be. They are not allowed to sell to random customers and importers,” he said.

The CBN will now determine the rate the BDCs will sell the dollar which is contrary to the ‘willing buyer, willing seller’ model introduced by the CBN.

“The CBN will determine the rate the BDCs will sell from tomorrow and the rate of the CBN, all BDCs are not expected to sell anything above 2.5 per cent. The maximum spread to be sold on Monday from each dollar sold from Monday will be 2.5 per cent,” another source present at the meeting told THE WHISTLER.

THE WHISTLER understands that the BDCs are expected to make returns by 10 am a day after receiving the intervention from the apex bank.