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CBN increases BDCs allocation to $10,000/week

By on March 31, 2017

The Central Bank of Nigeria CBN) will from Monday, April 3, 2017 commence twice weekly FOREX sales to licensed Bureaux de Change (BDCs) in the country.

A statement by the Bank’s Acting Director, Corporate Communications Department, Isaac Okorafor, disclosed that weekly sale amount has been increased to $10, 000 (i.e. $5000 per bid). Initially, the bank was allocating $8,000 once every week. On Monday the Apex bank has reduced the rate to BDCs from 390 to 360/$.

The statement further disclosed that licensed BDCs are henceforth required to fund their accounts with the CBN on Mondays and Wednesdays while they receive their purchases on Tuesdays and Thursdays, respectively.

According to Okorafor, this strategic move is aimed at ensuring wider spread and liquidity in the market to Deposit Money Banks as well as BDCs.

Meanwhile, the CBN on Thursday, March 30, 2017, offered the total sum of $100 million to authorized dealers to service forwards request by wholesale customers in the interbank market.

It will be recalled that the CBN, in its resolve to sustain liquidity in the FOREX market, on Monday, March 27, 2017, offered $100m in wholesale forwards to DMBs, which was fully taken.