Naira to trade at N386 as CBN resumes FX sales to BDC

The Central Bank of Nigeria (CBN) has announced the resumption of forex sales to the Bureau De Change (BDC) operators after over four months of suspension as it directed the BDCs to sell a dollar for N386.

CBN had suspended dollar sales to BDCs when the FG announced suspension of international flights in response to the COVID-19 pandemic.

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The CBN, in a circular to all authorised dealers, bureau de change operators and the general public said the resumption will commence August 31, 2020.

The CBN will sell dollars to the BDCs at a rate of N384/$ while the BDCs are to sell to end-users at no more than N386/$.

The circular, signed by NNAJI O.S, the Director Trade & Exchange Department of the CBN, said the resumption is following the resumption of international flight operations fixed for September 5th, 2020.

The CBN said the purchase of foreign exchange by BDCs shall be on Mondays, and Wednesdays in the first instance.

It also said the BDCs are to ensure that their accounts with the banks are duly funded with the equivalent Naira proceeds on Fridays and Tuesdays accordingly.

“All authorised dealers and Bureau De Change Operators are hereby advised to ensure strict compliance with the provisions of the extant regulations on the disbursement of foreign exchange cash to travellers, as any case of infraction, will be appropriately sanctioned,” the circular warned.

President of the Association of Bureau De Change Operators of Nigeria, (ABCON), Alhaji Aminu M. Gwadabe told our correspondent on the phone that the move by the CBN will mitigate the crisis we are witnessing in the industry due to exchange rate volatility.

As at Thursday, the naira exchanged for N465/$1 at the street market.

“I believe that even though the amount is still $10,000 a week, it is a step in the right direction and all the BDCs should live to the responsibility,” he noted.