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CBN Sells $10,000 Each To BDCs For Eligible Invisible Transactions At N1,251/$

*Operators keep Mute

As apprehension rises over the second approval for the sale of dollars to the Bureau De Change operatiors, Central Bank of Nigeria (CBN) has warned them that any breaches shall be appropriately sanctioned, including suspension.

According to a memo signed by Hassan Mahmud, director , Trade and Exchange, dated March 25, ‘Sales Of FX To Meet Retail Market Demand For Eligible Invisible Transactions’ and addressed to the president, Association of Bureau De Change Operators of Nigeria (ABCON),CBN said,

“CBN said: “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CBN approved a second tranche of sale of FX to eligible BDCs.”

“We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. The BDCs are to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price.

“All eligible BDCs are directed to make the naira payment to the underlisted CBN naira deposit account numbers before close of business on Thursday March 28, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN branches.”

The rate is below the N1,431/$ the official window closed on March 22 and the N1,470/$ the parallel market traders reported on the same day.

Metrobudinessnews.com (MBN) gathered that the first tranche, each “eligible” BDC was allocated $20,000 at the rate of “N1,301/$ (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024)

But apprehension has continued to grip the foreign exchange market that sharp practices typified by round tripping is so rampant among the operators on collision with banks that, some analysts say unless the market is samitised, these releases would amount to ‘pouring water into baskets’.

Their argument is that the sharp practices are so pervasive so much that only effective monitoring and openly sanctioning of culprits to serve as deterrent would instil fear to some of these die- hard operators.

Efforts to get assurances from Aminu Gwadabe, president, ABCON, proved abortive as he was yet to respond to message sent to him since morning.

Similarly, other operators kept mute insisting that CBN should rather not be distracted from doing ‘good job to the economy’.

MetroBusinessNews/ a strategic cross-reporting initiative.

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