CBN to sell $10,000 to BDCs as Naira gains strength

The Central Bank of Nigeria (CBN) has said it will be selling $10,000 each to the 2699 licensed BDCs at the first dollar sales of the year today, Wednesday, January 6, 2016, even as the value of the naira strengthened to N262 to the dollar.

The greenback which sold at N265 yesterday gained value selling at N262 as demand for forex dropped. Meanwhile the acting President of the Association of Bureau de Change Operators of Nigeria (ABCON) said its members have begun to pay up the N250,000 renewal fee.

CBN Director, Corporate Communications, Ibrahim Mu’azu yesterday confirmed that there would be dollar sales to BDCs, contrary to reports that the apex bank will stop sales of foreign exchange to BDCs.

The apex bank last week had published the list of 2,699 BDCs whose licenses have been confirmed having introduced the new requirements in a bid to correct observed deficiencies in the operation of BDCs in the country.

CBN had reviewed the mandatory cautionary deposit for BDCs to N35 million, while the application fee was raised to N100,000, the licensing fee to N1 million, the annual renewal fee for the forex dealers was also increased to N250,000.

Last month, CBN published revised guidelines for the operations of BDCs which ordered BDCs to close all branches within 90 days, saying branch operations is no longer allowed in the subsector.