The Central Bank of Nigeria (CBN) has suspended foreign exchange sales to the Bureau De Change (BDC) operators until further notice.
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The Association of Bureau de Change of Nigeria (ABCON) had on the 24th of March written to the apex bank, recommending a halt in the weekly sales of forex to the BDCs.
The CBN, in its response dated March 25, 2020, and addressed to the ABCON president notified them of its decision to suspend sales.
The letter states that the suspension follows the government’s directive to restrict gatherings to not more than 20 persons aimed at reducing person-to-person contact and to curb the transmission of the coronavirus (COVID-19).
The Central Bank of Nigeria had collapsed the multiple exchange rate policy that determined the value of the naira and adopted a single exchange rate.
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The country now has a uniform rate for the official rate, bureau de change operators, importers and exporters amongst others.
This was contained in a circular signed by the Director, trade and exchange department of the CBN, Ozoemena Nnaji, on the disbursement of the proceeds of the International Money Transfer Operator (IMTO).
The CBN had said that IMTSOs will sell to banks at N376 per dollar, banks to CBN at N377 per dollar, CBN to Bureau de change operators N378 per dollar, BDCs to end-users not more than N380 per dollar and the volume of sales for each market set at $20 thousand per BDC.
Although this move has been seen as technically devaluing the naira the apex bank last week said in a release that “market fundamentals do not support Naira devaluation at this time.”
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