CBN in September 2024 intervened in the black market when it sold FX at N1590 per dollar to BDC operators
By Kehinde Okeowo
The Central Bank of Nigeria (CBN) has countered a trending circular saying it authorized the sales of foreign exchange to Bureau De Change (BDC) operators in the country, describing the report as “fake”.
The circular dated Tuesday, 10 December, had claimed that the apex bank sold $20,000 to each legible BDC operator at N1,300 per dollar rate.
It read, “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.”
The circular further added, “To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1.301/S-(representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, December 10, 2024
“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN.
“All eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentations for disbursement at the appropriate CBN Branches ABUJA, AWKA, LAGOS and KANO)”
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Reacting to the post on X on Tuesday, CBN said the information was misleading, adding that the circular did not originate from the bank.
“This information is misleading and not affiliated with the Central Bank of Nigeria,” the tweet read, urging the public to disregard the document.
This comes as the Naira firmed up in the past seven days against the dollar at the FX market after CBN introduced the Electronic Foreign Exchange Matching System (EFEMS) for transparent FX transactions.
Although in the past two days, the Naira had weakened at the black market to N1660 per dollar, the country’s currency gained against the dollar on Tuesday at the official market to close at N1,525.
CBN intervened in the black market in September 2024 when it sold FX at N1590 per dollar to BDC operators.
