Naira to trade at 386/$ as CBN resumes FX sale to BDCs

The Central Bank of Nigeria (CBN) says it will resume weekly forex sales to Bureau de Change operators from August 31.

In a circular signed by O.S. Nnaji, director of trade and exchange department, the apex bank said BDCs must not exchange the naira at more than N386/$.

The apex bank said its decision to resume FX sales to BDCs is to enhance accessibility to forex “particularly to travellers” since the resumption date for international flights has been announced.

Musa Nuhu, director-general of the Nigerian Civil Aviation Authority (NCAA), announced on Thursday that international flights will resume on September 5; shifting it from August 29.

Providing a breakdown of the rates, the CBN said: “Please be advised that the applicable exchange rate for the disbursements of proceeds of IMTOs for the period Monday, August 31 to Friday, September 04, 2020, is as follows:

• IMTSOs to banks: N382/$1
• Banks to CBN: N383/$1
• CBN to BDCs: N384/$1
• BDCs to end-users: Not more than N386
• Volume of sale to each market is $10,000 per BDC.

The apex bank said FX sales to BDCs will hold on Mondays and Wednesdays in the first instance.

“The BDCs are to ensure that their accounts with the banks are duly funded with the equivalent naira proceeds on Fridays and Tuesdays,” the circular read.

“Banks shall continue to sell foreign currencies for travel-related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents (passport, air ticket and visa).”