CBN begins sale of dollars to BDCs at N1,101/$1

According to the circular, the regulator instructed each BDC
operator to sell the dollars to eligible customers at a rate not exceeding 1.5
percent above the purchase price.

This means that BDCs are not expected to sell above
N1,117/$1.

“We write to inform you of the sale of $10,000 by the
Central Bank of Nigeria (CBN) to BDCs at the rate of N1101/$1,” the document
reads.

 “The BDCs are in turn
to sell to eligible end users at a spread of not more than 1.5 percent above
the purchase price.

“All eligible BDCs are therefore directed to commence
payment of the Naira deposit to the underlisted CBN Naira Deposit Account
Numbers from Today Monday April 08, 2024, and submit confirmation of payment
with other necessary documentation for disbursement at the appropriate CBN
Branches.”

On April 6, ABCON urged the CBN to reduce its applicable
buying FX rate downward due to the naira’s speedy recovery.

The group said the N1,251/$ applicable buying rate the CBN
pegged for BDC operators would result in losses for its members, as the open
market rate stands at N1,235/$.