Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,173,782 members, 7,889,531 topics. Date: Sunday, 14 July 2024 at 02:32 PM

CBN formalises dollar sales to BDCs as naira improves - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / CBN formalises dollar sales to BDCs as naira improves (33970 Views)

Naira Depreciates Further As Dollar Sales To BDCs Wobble / Oil Companies Resume Dollar Sales To Banks As CBN Eyes Supply / Naira Falls After CBN Stops Forex Sales To BDCs (2) (3) (4)

(1) (2) (3) (4) (5) (Reply) (Go Down)

CBN formalises dollar sales to BDCs as naira improves by ChangetheChange: 5:55pm On Feb 27
The Central Bank of Nigeria has announced plans to sell forex to bureau de change operators at N1,301 per dollar.

The decision, which aimed to enable the sale of foreign exchange to BDC operators to meet the retail demand for eligible invisible transactions, was contained in a statement signed by Hassan Mahmud, a director at the Trade and Exchange Department.

The statement explained that CBN made the decision after observing the continued price distortions at the retail end of the market, which, according to them, is feeding into the parallel market and further widening the exchange rate premium.

Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the naira, the Central Bank of Nigeria (CBN) has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.”

“To this end, the CB has approved the sale of foreign exchange to eligible bureau de change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$1 – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, 27th February 2024),” said the CBN statement.

It added that all BDCs should sell to end-users at a margin not more than one per cent above the purchase rate from CBN.

“All eligible BDCs are directed to make the naira payment to the designated CBN foreign currency deposit naira accounts and submit confirmation of payment, with other necessary documentations, for disbursement at the appropriate CBN branches – Abuja, Awka, Lagos and Kano,” the apex bank stated

https://gazettengr.com/cbn-directs-bdcs-to-buy-forex-at-n1301-per-dollar-sell-at-1-profit/

15 Likes 4 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by a4cube: 5:58pm On Feb 27
This u turn pass the u turn of London black cabs.

26 Likes 2 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by AllTheWayUp: 5:58pm On Feb 27
grin grin grin
After destroying the economy and decreasing the purchasing power of Nigerians with their trial and error policies , they have now gone back to their vomit.
Thunder fire Tinubu
Thunder fire all those who supported Tinubu for floating the Naira

88 Likes 7 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by onez: 5:58pm On Feb 27
When the damage is already done. They should release and apologize to Emefiele

63 Likes 7 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by AllTheWayUp: 5:59pm On Feb 27
a4cube:
This u turn pass the u turn of London black cabs.
grin grin grin
Tinubu is ruling Nigeria with Trial and error strategy

76 Likes 7 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by judatech: 6:00pm On Feb 27
We dey wait...
Let this translate to decrease in food stuff price o!

8 Likes 1 Share

Re: CBN formalises dollar sales to BDCs as naira improves by EmiloCorn: 6:00pm On Feb 27
Yes our Jagaban is working.

This mandate I am standing on is too solid cool

AllTheWayUp:

grin grin grin
Tinubu is ruling Nigeria with Trial and error strategy

This thing you posted is treasonous angry take it back jor

How can you say our oga is playing kalo - kalo with the lives of over 200 million people?

Are, you okay?
Is he okay?

You people should be careful on this place oh let us not call DSS for many of you undecided

11 Likes 3 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by AllTheWayUp: 6:03pm On Feb 27
EmiloCorn:
Yes our Jagaban is working.

This mandate I am standing on is too solid cool



This thing you posted is treasonous angry take it back jor

How can you say our oga is playing kalo - kalo with the lives of over 200 million people?

Are, you okay?
Is he okay?

You people should be careful on this place oh let us not call DSS for many of you undecided
Lol

1 Like

Re: CBN formalises dollar sales to BDCs as naira improves by garriAndsugar: 6:04pm On Feb 27
Make we try this one whether e go work grin

56 Likes 2 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by optimusprime2(m): 6:09pm On Feb 27
Its too late in the day, the damage has already been done...

Reversing a floated currency to a fixed rate that depreciated just calls for a general devaluation.

5 Likes 1 Share

Re: CBN formalises dollar sales to BDCs as naira improves by richiemcgold: 6:11pm On Feb 27
We should try and read attentively before running to the comment section. Based on what I read up there, I don't think the floating has really been reversed. So why are those people above me shouting floating upandown?
In a nutshell, the fx market has been extended to BDC again but it is specifically for eligible BDCs and the market can still be well monitored by the CBN.

65 Likes 5 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by Dottore: 6:12pm On Feb 27
Ok

1 Like 1 Share

Re: CBN formalises dollar sales to BDCs as naira improves by LegendHero(m): 6:15pm On Feb 27
I love this.

So it will be determined by the true market rate of the previous trading day spot transaction of NAFEM.

So the market will still determine the rate every week.

“To this end, the CB has approved the sale of foreign exchange to eligible bureau de change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$1 – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, 27th February 2024),” said the CBN statement.

90 Likes 3 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by Truths9ja: 6:18pm On Feb 27
As the Cbn governor reversed floating of naira, he should reverse banning of Binance and other crypto currency wallets app to our media space back.

3 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by Realdeals(m): 6:20pm On Feb 27
Not true, they sell at the NAFEM spot rate of the previous day. They always choose the lowest rate from the previous day, with a mandate to the retailers not to sell beyond 1% margin.

Stopping the sales of FX by the CBN led to the astronomical rise in the FX rate. By the time they clear the backlog, and Nigeria stops the importation of refined fuel, CBN will intervene more often to bring down the rate.

12 Likes 3 Shares

Re: CBN formalises dollar sales to BDCs as naira improves by frankyychiji(f): 6:21pm On Feb 27
This government na originalkalokalo grin

3 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by Yankee101: 6:23pm On Feb 27
I hope this is true
But the damage has been done
People are now eating stone rice


Multiple health problems waiting ahead
Some have died cos their medication became too expensive
Prices have gone sky high

9 Likes 1 Share

Re: CBN formalises dollar sales to BDCs as naira improves by HeatSeeker(m): 6:27pm On Feb 27
onez:
When the damage is already done. They should release and apologize to Emefiele

Honestly, they owe him a very big apology.

5 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by HeatSeeker(m): 6:28pm On Feb 27
judatech:
We dey wait...
Let this translate to decrease in food stuff price o!

It won't. People have already bought things at a high price. They must sell high to avoid losses.

10 Likes 1 Share

Re: CBN formalises dollar sales to BDCs as naira improves by Putindbutt: 6:34pm On Feb 27
LegendHero:
Mynd44 Seun Fergie001

This is fake headline from the OP. No where in the news did Gazette mention floating reversal.

The naira still floating and there is no pegged rate. CBN adjust it based on the market.
OP is fond of creating fake headlines to bait zombidients. He did it many times during campaign period, seems they are back to their mischiefs. Hope the moderators keep an eye on them and sanitize the forum.

22 Likes 1 Share

Re: CBN formalises dollar sales to BDCs as naira improves by TheRealMalcolmX(m): 6:41pm On Feb 27
undecided

At the end of the day, a citizen should be able to afford the basic necessities of life and be secure in his surroundings. That's all that is demanded from the government.

2 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by Ernerstdavid55(m): 6:41pm On Feb 27
angry
Re: CBN formalises dollar sales to BDCs as naira improves by SensualMan: 6:42pm On Feb 27
Tinubu is working! The economy is fantastic!

Bola Ahmed Okechukwu Tinubu!

On your mandate we shall stand!

Jagaban till 2039

2 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by oluwaseyi0: 6:42pm On Feb 27
Good decision

Obviously, Nigeria can't survive Naira floating and fuel subsidy removal at once

If the government sells to BDC at 1300 any BDC operator selling above 1350 - 1400 should be arrested and jailed for financial terrorism

you can't buy from government at 1300 and resell at 1800 on every dollar

Sanusi Lamido Sanusi can see now that Nigeria is not ready for removal of Dollar subsidy

Little by little we will get there

5 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by Lanre4uonly(m): 6:42pm On Feb 27
Ok, noted.
Re: CBN formalises dollar sales to BDCs as naira improves by Houseofglam7(f): 6:42pm On Feb 27
🫤
Re: CBN formalises dollar sales to BDCs as naira improves by iCauseTrouble: 6:42pm On Feb 27
grin
Re: CBN formalises dollar sales to BDCs as naira improves by Nwaokunkpara: 6:44pm On Feb 27
Just wondering how tinubu will celebrate his one year in office

4 Likes

Re: CBN formalises dollar sales to BDCs as naira improves by inoki247: 6:45pm On Feb 27
Truths9ja:
As the Cbn governor reversed floating of naira, he should reverse banning of Binance and other crypto currency wallets app to our media space back.

Lol nobody ban any Binance nd Crypto wallets maybe you're using the wrong wallet or have been trading at the wrong platform....


If u dey use Naija SM dey reason u go dey loose that's how people started doing panic selling on doz app last week...

1 Like

(1) (2) (3) (4) (5) (Reply)

Miriam Akin: Nigeria Auto And Kiddies Investor Marks Birthday With Amazing Photo / The Best Way To Avoid Embarrassments From Loan apps / Osinbajo Announces 80% Slash For NAFDAC Registration Fee

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 28
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.