Business
CBN Kickstarts Dollar Sales To BDCs
In a strategic move to address the escalating demand for invisible transactions, the Central Bank of Nigeria (CBN) has officially commenced the sale of US dollars to qualified Bureau De Change (BDC) operators.
This pivotal decision was communicated through a circular titled “Sale of Foreign Exchange to Bureau de Change Operators to meet retail demand for eligible invisible transactions released on Tuesday, bearing the signature of Hassan Mahmud, the Director of the Trade and Exchange Department.
This initiative is a response to the broader reforms in the foreign exchange market, with the primary objective of establishing a market-driven exchange rate for the Naira.
The CBN highlighted its observation of ongoing price distortions in the retail sector, impacting the parallel market and exacerbating the exchange rate premium.
It said “To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change to meet the demand for invisible transactions,”
In an additional directive, the Central Bank of Nigeria (CBN) specified that each Bureau De Change (BDC) will have access to $20,000, sold at the rate of N1,301 per dollar.
This rate reflects the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, 27th February 2024.
Furthermore, the CBN emphasized that all BDCs are permitted to sell to end-users, maintaining a margin not exceeding one percent above the purchase rate from the bank.
The Central Bank of Nigeria (CBN) further instructed eligible Bureau De Change (BDCs) to complete Naira payments to designated CBN Foreign Currency Deposit Naira Accounts.
Subsequently, they are required to submit confirmation of payment along with other necessary documentation for disbursement at the respective CBN Branches in Abuja, Awka, Lagos, and Kano.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
The 47th President of the United States, Donald Trump attracted up 3 trillion dollars in investments into the country’s economy in his first full day at work.
This was gleaned from the verified handle of the POTUS on micro-blogging site, X, on Wednesday.
Biztellers reports that the POTUS is focused ensuring at least $1 trillion investment daily for the first seven days of his return to the White House, which would be driven by key clearly identified areas, including artificial intelligence.
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President Trump wrote, “In total, before the end of my first full business day in Washington and the White House, we’ve already secured nearly $3 trillion of new investments in the United States.
“And probably, that’s going to be six or seven by the end of the week.”
In a short video clip accompanying the statement, President Trump assured that the surge in investments would likely hit $7 trillion within his first seven days as the 47th POTUS.
He highlighted that artificial intelligence had proven to be an area lots of willing entrepreneurs had shown much appetite for.
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