CBN Resumes Forex Sales to BDCs on Monday

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FX market closes with N1 drop against dollar on black market - Businessday  NG

Central Bank of Nigeria (CBN) Thursday announced that the gradual sale of foreign exchange (forex) to licensed Bureau De Change (BDC) operators would resume from Monday.

CBN, in a circular dated August 27, and addressed to all authorised dealers, BDC operators and members of the public, which was signed by its Director, Trade and Exchange Department, Dr. Ozoemena Nnaji, said the resumption of forex sales was part of efforts to enhance accessibility of the greenback, particularly to travellers following the announcement of the limited resumption of international flights.

Nigerian Civil Aviation Authority (NCAA) thursday said the resumption of international flights, earlier fixed for Saturday, had been shifted to September 5.

In another circular, obtained yesterday from its website, CBN reviewed its guidelines for the licensing and regulation of Payment Service Banks (PSBs).

In the circular signed by Director, Financial Policy and Regulation, Kevin Amugo, which was dated August 27, the apex bank pegged the minimum capital requirement for PSBs at N5 billion. They are also expected to deposit a non-refundable application fee of N500,000.

CBN, in the circular on forex sales to the BDCs, stated: “The Central Bank of Nigeria hereby wishes to inform the general public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from August 31, 2020.

“Consequently, purchase of forex by BDCs shall be on Monday, and Wednesdays in the first instance.”

According to the apex bank, BDCs are expected to “ensure that their accounts with the banks are duly funded with the equivalent naira proceeds on Fridays and Tuesdays accordingly.”

“Meanwhile, authorised dealers (deposit money 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).

“All authorised dealers and BDC operators are hereby advised to ensure strict compliance with the provisions of the extant regulations on the disbursement of foreign exchange cash to travellers, as any case of infraction will be appropriately sanctioned,” it stated.

In another circular titled: “Weekly Exchange Rate for Disbursement of Proceeds of International Money Transfer Service Operators (IMTSOs),” also signed by Nnaji, CBN specified the various rates.

The applicable exchange rates for the disbursement of IMTSOs’ proceeds would be from August 31 to September 4.

According to CBN, IMTSOs are expected to sell their dollar proceeds to banks at N382/1$; while the banks are to sell to CBN at N383/$1.
Also, the rate CBN would sell to BDCs was fixed at N384/$1 and BDCs are to sell to end-users at not more than N386/$1.

“Kindly note that the GBP (British Pound) rate should be derived from the US dollar cross rate on the date of the sale,” it stated.

In a major policy coup, CBN this week, had moved to arrest the age-long practice of over-invoicing, which unscrupulous businesses have used to cart away the nation’s forex, directing banks and other authorised dealers to desist from opening Forms ‘M’ whose payment are routed through a buying company, agent, or other third parties.

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