CBN pegs dollar sales to BDCs at $30,000 per week

The Central Bank of Nigeria (CBN) Monday pegged foreign exchange cash sale to Bureau De Change (BDC) operator by authorized dealers to a maximum of $30,000 per week.

Also, the selling rate by the authorized dealers to BDCs shall be the buying rate from the international money transfer operators. The funds purchased by BDCs shall be disbursed to eligible transaction such as business travel allowance/personal travel allowance, overseas school and medical fees. Furthermore, the maximum disbursement shall not exceed US$5,000 per transaction.

The Apex bank had in July 22, 2016 in circular, signed by Gotring W. D, acting director, trade and exchange department, directed authorized dealers who are agents of approved international money transfers operators to sell foreign currency accruing from inward money remittances to licensed BDCs with immediate effect.

In a fresh circular released yesterday by the CBN, a BDC is free to nominate its preferred authorized dealer (Deposit Money Bank) and can only procure the said amount from only that bank of its choice in a week.

The CBN warned that the foreign exchange purchased by BDC from the authorized dealer shall be sold to end users at a rate not exceeding two percent margin above the buying rate.

“For the avoidance of doubt, the two percent margin stated in (3) above shall be applicable to all funds to be retailed by BDCs regardless of sources of fund”, the circular signed by Gotring said.

The authorized dealers shall continue to render weekly returns on sales to BDCs and BDCs, returns on purchases from authorized dealers to the director, trade and exchange department of the CBN.

According to the circular, record shall be maintained of all transactions by BDCs showing the BVN of the end-users, including endorsement of the amount disbursed in the international passport of the beneficiary.

“Any authorized dealer or BDC that diverts fund or violates the provision of this guidelines shall attract appropriate sanction including suspension of dealership licenses”, the CBN said.