CBN crashes Dollar, sells 'cheap' to BDCs, sets new exchange rate for Nigerians

The Central Bank of Nigeria (CBN) has announced another round of discounted dollar sales to Bureau de Change operators to stabilise the market.

According to a new circular seen by Legit.ng, the apex bank is ready to sell to licenced BDC operators $10,000 at N1,021/$1 per dollar.

The rate is far cheaper than the official exchange rate, which closed at N1,234.49 on Monday, April 23, 2024.

Also, a BDC trader told Legit.ng that on Monday, the naira in the parallel market sold at N1,250/$1.

CBN gives a resale rate

To achieve its objective and stop round-tripping, the CBN has instructed the 1,583 beneficiary BDCs to sell the allocated dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.

This means BDCs will sell dollars to Nigerians not above N1,040 maximum.

The circular reads:

"We are writing to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to Bureaux de Change (BDCs) at the rate of N1,021/$1. The BDCs are then 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 into the underlisted CBN Naira Deposit Account Numbers starting from today, Monday, April 22, 2024, and to submit confirmation of payment, along with other necessary documentation, for the disbursement of FX at the respective CBN branches."