The Central Bank of Nigeria (CBN), on Monday, approved a second tranche of sale of foreign exchange (FX) to eligible Bureau De Change (BDC) operators to meet their demand for invisible transactions.
The central bank disclosed that the sum of $10,000 would be sold to each BDC at the rate of N1, 251/S, which was a N50 reduction compared to N1, 301/S allocation in the initial tranche.
The latest intervention also indicated that the apex bank halved the $20,000 it allocated to each BDC in February.
CBN conveyed the latest allocation in a letter addressed to President, Association of Bureau De Change Operators of Nigeria (ABCON), dated March 25, 2024, and signed by CBN Director, Trade and Exchange Department, Dr. Hassan Mahmud.
The bank further instructed the BDC operators to sell FX to eligible end-users at a spread of not more than 1.5 percent above the purchase price, compared to one percent previously.
The central bank also warned that any BDC that breached the terms of sale to end-users would be sanctioned appropriately, including outright suspension from further participation in the sale.
Only last month, the apex bank announced that it had approved the sale of FX to eligible BDC operators to meet their demand for invisible transactions. The bank sold $20,000 to each BDC at the rate of N1, 301/S, which represented the lower band rate of executed spot transactions at the Nigeria Autonomous Foreign Market (NAFEM) for the previous trading day, as of February 27, 2024.
The central bank explained that the intervention became necessary following the continued price distortions at the retail end of the market, which was feeding into the parallel market and further widening the exchange rate premium.
The move also complemented ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the naira.
CBN emphasised that the BDCs were allowed to sell to end-users at a margin not more than one percent above the purchase rate from the central bank.
The naira extended its gains, on Monday, on the official NAFEM window, it appreciated by N23.45 to close at N1, 408.04/$1, compared to N1, 431.49 on Friday.
On the other hand, on the parallel market, the naira closed at N1, 400/$1, from N1, 440/$1 it exchanged over the weekend.
Daily foreign exchange turnover on the official window also increased by 11.06 percent to $221.80 million, from $199.7 million on Friday.
The highest spot rate on Monday was pegged at N1, 422 while the lowest spot rate recorded was N1, 300.
Meanwhile, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) commended the announcement of the clearance of a $7 billion foreign exchange backlog by the CBN. But it reiterated the need to take drastic steps to address the unmet forex requests by some members of private sector operators.
In a statement, National President of NACCIMA, Dele Oye, hailed President Bola Tinubu and the CBN governor, Olayemi Cardoso, for the move. Oye disclosed that several NACCIMA member companies and other private sector operators had challenged the completeness of the forex clearance.
Oye stated that many NACCIMA members had reported that despite the CBN’s commitment to providing foreign exchange, their funds in naira had been retained for extended periods, some for over a year. He regretted that this had occurred without adequate communication from their respective banks or the CBN, leaving their business operations in a state of uncertainty.
He recalled that in February, NACCIMA, as part of the organised private sector in Nigeria, had sought the intervention of the Minister of Finance to address the issues, emphasising the need for transparency and expedited resolution.
The NACCIMA boss called for a more comprehensive and transparent approach to resolving the remaining foreign exchange allocations.
The statement added, “As part of the Hon. Minister of Industry Trade and Investment preparation for the National Assembly Summons, a stakeholder meeting comprising NACCIMA, MAN, affected banks and customers was convened by the Honourable Minister of Industry, Trade and Investment at the Bank of Industry in Lagos on the 21st of March, 2024.
“At the meeting, it was gathered that there has been a lack of formal communication from the CBN regarding the rejection of foreign exchange bids. Furthermore, it was revealed that Deloitte, the consulting firm engaged by the CBN for verification purposes, had not directly engaged with the affected banks or their customers for clarification on any contentious transactions.
“The consensus from the meeting was that direct engagement with the CBN is essential. The Honourable Minister urged all parties to pursue dialogue and cautioned against actions, like litigation, that could hinder such discussions.”
Oye stated, “In light of these developments, NACCIMA appeals to the CBN to collaborate closely with the Honourable Minister of Industry, Trade, and Investment, as well as the banking sector and their clientele to resolve all outstanding issues pertaining to legitimate letters of credit for which naira has already been collected (for a considerable time) with a promise of fulfilment.
“It is important to underscore that the continuity of government obligations transcends the tenure of individual officeholders; hence, legitimate transactions initiated under previous administrations must be honoured with the same level of commitment.”
James Emejo and Nume Ekeghe
Follow us on:
Gbadebo Rhodes-Vivour has condemned the commercialisation of GMO seeds, warning of threats to Nigeria’s food…
Oleksandr Usyk has secured victory over Tyson Fury in Riyadh, successfully defending his heavyweight championship…
Albania plans a one-year TikTok ban from January after a schoolboy’s death sparks concerns over…
A suspect accused of killing five people by driving into a crowded Christmas market in…
A US Navy F/A-18 Hornet was mistakenly shot down over the Red Sea by the…
NNPC has reduced petrol ex-depot price to N899 per litre, sparking competition with Dangote Refinery…
View Comments
your choice at a minimum price E-AUCTION E-AUCTION E-AUCTION E-AUCTION E-AUCTION Some Auction Vehicles/Cars For Sale
Mama Africa #17,000 •Tomatoes Rice # *15,000* •Cap Rice #15,000 •My Food #17,000 •Mama Gold #17,500 •Ade Brazil #15,000 •Elephant Gold #15,000 •Royal Umbrella #15,000 Etc.
Golf3= 400,000
Camry Tinny-Light=500,000
Tundra 1,300,000
Toyota Exterra=850,000
Toyota Camry big daddy=650,000
Toyota Venza= 1.7million
Toyota Avalon=850,000
Camry spider 950,000
Toyota Rav4=950,000
Toyota Prado=1.3million
Muscle 1mill
TOYOTA HILUX=2million
Toyota Sienna=850,000
TOYOTA 4-RUNNER=950,000
Toyota Corolla=650,000
Toyota Matrix= 700,000
Toyota Highlander=950,000
Toyota Picnic=500,000
Tacoma 1.850,000
Toyota Hiace Bus=950,000
Toyota Tundra=1.5million
Toyota Sequola=900,000
BMW 5-series=1.960,000
BMW 3-series=1.640,000
BMW X6=2.670,000
Ford Edge=700,000
Ford Escape=600,000
Honda Elantra=600,000
Honda Baby-Boy=700,000
Dyna Truck 900k
TIPPER Head 6mill
Honda Accord=550,000
Honda CRV=650,000
HONDA CIVIC=500,000
HONDA EVIL-SPIRIT=750,000
HONDA ODYSSEY=500,000
Honda Pilot=850,000
Nissan pathfinder=800,000
Nissan Amanda=750,000
Infinity=950,000
Benz C250=N1.300,000
Benz C300=1.6MILLION
Benz ML350=2 million
Benz ML300=1.5 million
Benz ML550=2.6million
Mercedes-Benz C-Class ₦1.3Million
Mercedes-Benz E-Class ₦1.8Million
Mercedes-Benz GLK ₦3.Million
Es330 1.6m
Lexus C5 350=950,000
IS250 1m
Lexus Rx300=1.2 million
Lexus Rx330=1.5 million
Is350 2mill
Gx470 1.8mill
Lexus Rx350= 2 million
ES350 2mill
Land Rover Discovery ₦3.2Million
Land Rover Freelander ₦3.6Million
Land Range Rover Sport ₦4Million
Range rover vogue 3.8m
Acura MDX ₦1.8Million
Pequot 206=350,000
Pequot 406=470,000
Pequot 607=650,000
.....
((08132115039) (+234_915__6089_111)