The Financial Watch is reporting that the Central Bank of Nigeria, CBN, yesterday, directed banks to sell dollars for invisible transactions such as personal travel allowance, business travel allowance, school fees and others at N360 per dollar.
For this purpose, the apex bank released $85 million for sale to banks N 357/$1 for onward sale to retail end-users at not more than N360/$ for invisibles. The bank also offered $100 million to authorized foreign exchange dealers in the interbank wholesale window to meet the requests of genuine wholesale customers.
However, bureaux de change operators are reluctant to purchase dollars from the public due to fear of further appreciation of the naira. This was aggravated by the uncertainty about the exchange rate the CBN will sell dollars to BDCs this week.
Hitherto the apex bank sold dollars to BDCs at N381 per and mandates them to sell at maximum of N399 per dollar. However, BDCs expect that the apex bank will this week review these rates downward given the appreciation of the naira in the parallel market.
A BDC chief executive, who spoke to Vanguard on condition of anonymity said: “The market is stagnant. We are expecting the CBN to review our rates, so for now nobody is willing to buy, except the seller is willing to sell at any rate agreeable to the BDC.”
President, Association of Bureaux de Change Operators of Nigeria, ABCON, Alhaji Aminu Gwadabe said: “The situation is really frustrating. With the dollar selling at N380 in the parallel market, how can we sell at N400 per dollar?