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.

CBN Warns Against Unregistered IMTOs

CBN, IMTOs, Money TransferThe Central Bank has advised Nigerians at home and in the diaspora to beware of activities of some unlicensed International Money Transfer Operators (IMTOs) in Nigeria.

The CBN explained that this warning has become necessary due to the activities of some unregistered IMTOs, whose modes of operation are detrimental to the Nigerian economy.

All financial service providers in Nigeria are required to be duly licensed in order to protect both customers and the financial system as well as to ensure the credibility of financial transactions.

The apex bank warns that it will not condone any attempt aimed at undermining the country’s foreign exchange regime.

In the meantime, the CBN is planning to raise 245.18-billion-naira worth of treasury bills at an auction.

The bills will have maturities ranging between three months and one year.

The sum of 45.18 billion naira will be issued in three-month debt, 80 billion naira in the six-month paper and 120 billion naira in the one-year bill.

Results of the auction will be published on Thursday.