CBN increases dollar supply of BDCs to $30,000

By Aminu Imam

The Central Bank of Nigeria (CBN) has increased the weekly supply of dollars to Bureau-De-Change (BDC) operators from $15,000 per BDC to $30,000 per BDC.

The CBN stated this in a circular, entitled: “Review of Weekly Foreign Exchange Cash Sales to Bureau De Change Operators,” signed by its Director, Trade and Exchange Department, Olakanmi Gbadamosi, dated January 23, 2015, on its website at the weekend.

The latest policy takes effect from Wednesday, January 28th, 2015 auction.

This, the apex bank said, is in line with its resolve to calm the strong volatility observed in the foreign exchange market in the past few weeks as well as save the Naira from further depreciation,

The banking sector regulator said the move was also part of measures to deepen the BDCs segment.

While the CBN stated that it would sell the US dollar to BDCs weekly at the prevailing interbank rate, it warned the forex dealers not to sell to the public at more that 3.5 per cent of its selling rate.

It stated that: “This is to inform BDC operators and the general public that as part of the on-going review of developments in the foreign exchange market and in order to deepen the BDCs segment, the weekly forex cash sales to BDCs have been reviewed upward from $15,000 to $30,000 per BDC, with effect from Wednesday, January 28th, 2015 auction.

“While the CBN will sell to BDCs weekly at the prevailing interbank rate, the BDCs are expected to sell to the public at not more that 3.5 per cent above the CBN selling rate. Consequently, all BDCs are to ensure that the designated accounts in the CBN are duly funded with the equivalent naira proceeds not later than 48 hours before the bidding date.

“Operators are hereby advised to ensure strict compliance with the provisions of the extant regulations on the disbursement of forex cash to their respective customers, as any case of infraction will be appropriately sanctioned”.