Monday, December 23

Forex: CBN slashes BDC rate to N360

…$100m offer fully subscribed

Barely 24 hours after its directive to Deposit Money Banks (DMBs) in the country to sell foreign exchange obtained from it to retail end-users

at not more than N360/$1 for invisibles, the Central Bank of Nigeria (CBN), on Tuesday, March 28, 2017 crashed the rate at which it sells forex to Bureaux De Change (BDCs) in Nigeria to N360 and directed the BDCs to sell to end users at not more thanN362/$1.

The CBN Acting Director of Corporate Communications, Isaac Okorafor, confirmed the directive in Abuja on Tuesday, disclosing that the CBN, under the new policy, will sell forex to the licensed BDCs at the rate of N360/$1, while they will in turn sell to customers at a rate not more than N362/$1.

Okorafor said the objective of the new forex sale policy was to ensure a convergence of the rates in the interbank and BDC, stressing that the CBN remained committed to ensuring transparency in the market as well as fairness to end-users, many of who hitherto experienced challenges in accessing foreign exchange.

He therefore urged licensed BDCs to play by the rule, cautioning that the CBN would not hesitate in sanctioning any erring dealer.

Meanwhile, the CBN spokesman also disclosed to newsmen that the sum of $100 million offered to authorize FOREX dealers in the interbank wholesale window to meet the requests of genuine wholesale customers was fully subscribed at the auction on Tuesday, March 28, 2017.

Okorafor also reiterated his call to all stakeholders to play their respective roles in ensuring a smooth running of the foreign exchange market for the benefit of the Nigerian economy.

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