CBN slashes BDC rate to N362/$, auctions $100m, operators laud policy

The Central Bank of Nigeria (CBN) yesterday directed all licensed Bureau de Change (BDCs) operators to sell to end-users at N362 to a dollar.

The development is coming barely 24 hours after a directive was issued to banks to sell dollars at not more than N360 to a dollar for invisibles- personal travel allowance, business travel allowance, medical tourism and school fees.

However, local unit was exchanged at N306.15/$ at the interbank market, while it appreciated further to N375/$ at the parallel market, down from N520/$ a month ago.

By the latest rule, BDCs will now get dollar from the banks at N360/$, while they will in turn sell to customers at a rate not more than N362/$1.

Meanwhile, the CBN followed up the decision, like it did on Monday, with a $100 million offer at the interbank wholesale window to meet the requests of genuine wholesale customers- real sector operators.

CBN had ended the funding of BDCs, asking them to source forex from autonomous bodies (forex earning organizations), but in July 2016, it directed banks to sell all the diaspora remittances to them.

Although the rate for the transaction was explicitly stated, to appease the International Money Transfer Operators, The Guardian learnt that it was not less than N399/$, while BDCs sold to end users at not more than N400/$.

The Acting Director of Corporate Communications, CBN, Isaac Okorafor, who confirmed the directive, disclosed that the CBN, under the new policy, will sell forex to the licensed BDCs at the rate of N360/$1, while they will in turn sell to customers at a rate not more than N362/$1.

The President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe told The Guardian that the rates are now harmonised and investors have no further excuse of not bringing the long-sought foreign investments.

The Executive Secretary of ABCON, Cletus Uduma, expressed hope that the new policy would come with corresponding adjustment in the rate that diaspora remittances are sold them, just as CBN has stated.