CBN orders money agents to sell $30,000 to each BDC

The Central Bank of Nigeria, (CBN) has charged Authorized Dealers, who are agents to the approval of International Money Transfers Operators (IMTSO), to sell foreign currency cash to licensed Bureau De Change operators (BDCs), subject to a maximum of USD30,000.00 ( Thirty Thousand United States Dollars) weekly.

The apex bank, who gave this directive in a circular pasted on its website today  (Tuesday), noted that a BDC is expected to nominate its preferred Authorized Dealer (DMB) and can only procure the said amount from its bank of choice in a week.

The circular added that selling rate by the Authorized Dealer to BDCs would be the buying rate from IMTO plus a margin not exceeding 1, 5 %.

Furthermore, it stressed that foreign exchange cash purchased by BDCs from Authorized Dealers (ADs) must be sold to foreign exchange end users at a rate not exceeding two percent  margin above the buying rate.

The regulatory body noted that the Authorized Dealer will continue to render weekly return on sales to BDCs, while the BDCs will continue to render returns on purchases from ADs as specified in the attached excel format to Trade and Exchange department, CBN, Abuja.

Similarly, in view of the observed abuse of access to the CBN standing lending facility by the ADs, the apex bank said it has taken some measure to redress the trend  and redefine  the mode of  operations by authorized dealers at the window.

Thus, it then required all Authorized Dealer to refrain from accessing the discount window of the CBN on the settlement date for government securities auctions.

Business247 News Online noted that the securities referred to include CBN bills, Nigerian, Treasury Bills and Federal government of Nigeria Bonds.

To this end, it then requires all Authorized Dealer to comply as any violation will result in the denial of access the CBN standing lending, the circular said.