NAIRAMETRICS
The Central Bank of Nigeria (CBN) has announced the approval of the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions in a decisive step to strengthen the naira.
In a circular signed by A. A Mahdi, the Acting Director, Trade and Exchange at the CBN, the bank announced that the sum of $20,000 is to be sold to each BDC at the rate of N1,450/$1.
This rate represents the lower band of the trading rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) from the previous trading day.
These sales come at a time when the naira faces constant pressure, inching toward the N1,600/$1 ceiling.
This measure is expected to meet the demand for invisible transactions and curb the widening exchange rate premium observed in the parallel market.
BDCs to sell at rates not exceeding N1,471.75/$1
To address these distortions and ensure a more stable exchange rate, the CBN’s approval allows BDCs to sell FX to eligible end-users with a margin not exceeding 1.5% above the purchase rate from the CBN.
This means that the BDCs cannot make more than N21.75 profit on each dollar they sell to their customers.
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