CBN Raises BDC Exchange Rate To N385 Per Dollar

forex, CBN, bureau de change, exchange rate, Central bankThe Central Bank of Nigeria has raised the exchange rate for bureau de change operators to 385 naira per dollar.

This move is to encourage Nigerians in diaspora to use official channels to transfer earnings back home.

Prior to the announcement, the CBN allows BDCs to buy at 375 naira per dollar and sell at 381 naira per dollar.

In the meantime, the naira appreciated at the interbank foreign exchange market in response to intervention by the CBN.

The regulator sold 1.5 million dollars to stabilize the interbank exchange rate.

The local currency appreciated to 305 naira 5 kobo at the interbank and 455 naira to the greenback at the parallel market.

Meanwhile the CBN is also expected to license 20 new international money transfer operators in the coming weeks to handle an estimated 21 billion dollars annual diaspora remittances into the country.

This is part of efforts to stabilise the foreign exchange market.

The President of the Bureau De Change Operators of Nigeria, Mr Aminu Gwadabe, believes the CBN’s policy on IMTOs will boost diaspora cash inflow into the country and force the dollar rates against the naira down.

The CBN had in August 31, licensed 11 IMTOs in addition to Western Union, Moneygram and RIA, which were earlier cleared by the regulator.

N5,000 will strengthen the cashless policy – CBN official

The Director, Corporate Communications Affairs of the Central Bank of Nigeria (CBN), Mr Ugochukwu Okoroafor has affirmed that the apex bank’s decision to introduce the N5,000 note is to strengthen the cashless policy of the bank.

Illustartion of the planned N5000 with leading female activists by Vanguard newspaper.

He further explained that the Project Cure which is the review of the nation’s currency announced by the CBN last week, is in-line with the CBN’s statutory policy of reviewing the nation’s currency. He also stated that the move is in line with global best practices of reviewing nation’s legal tender on a regular basis of every five-eight years.

Mr Okoroafor on our weekly breakfast show, Sunrise, noted that the N1,000 has been in existence in the last seven years. N500 has been around for 11 years, N200 for 12 years and the N100 for 13years, hence the need for this overall review of the currency, which according to him is ‘over-due’.

The corporate affairs manager also argued that it is essential to rejuvenate the currency, “to make it new”, “for an economy that is just coming out a global recession” he said.

However, a chartered accountant, Bala Zaka, countered the CBN’s policy, describing it as ‘irrelevant brilliancy’.