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Naira vs Dolla: CBN to ban street trading, mulls fresh guidelines for BDCs

CBN Directs BDCs to Maintain Naira-Dollar Exchange Rate Amidst FX Crisis.

 

In response to the ongoing FX crisis, the Central Bank of Nigeria (CBN) has issued a directive to Bureau De Change (BDC) operators, providing them with $10,000 each at an exchange rate of N1,251 per US dollar. Hassan Mahmud, the Director of the CBN’s Trade and Exchange Department, disclosed this in a recent circular.

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The CBN’s directive stipulates that BDCs must offer dollars to eligible customers at a rate not exceeding 1.5% above the buying price. Consequently, BDCs are advised to refrain from selling above N1,269 for every $1 exchanged.

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The circular, signed by Hassan Mahmud, states: “We refer to our previous communication referenced TED/DIR/CON/GOM/001/071 regarding the allocation of FX to eligible BDCs. We are pleased to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. BDCs are required to sell to eligible end users at a spread of no more than 1.5% above the purchase price.”

This directive underscores the CBN’s efforts to stabilize the foreign exchange market amidst the current challenges. BDCs are urged to adhere to these guidelines to ensure stability and accessibility of foreign exchange for end users.

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