CBN Stops Dollar Sales to BDCs

The Central Bank of Nigeria (CBN) yesterday, stopped, with immediate effect, sale of dollars (forex) through the Retail Dutch Auction System (RDAS) and interbank to Bureau De Change (BDC) operators.
A circular to authorized dealers signed by CBN Director, Trade & Exchange, Olakanmi Gbadamosi, however said the weekly sales of forex to BDCs will be sustained by the CBN based on the liquidity needs of the market. He explained that the regulator took the decision based on ongoing review of developments in the foreign exchange market and the need to check speculative demand in the market. Both the interbank and RDAS funds, he said, should be used for strictly funding of Letters of Credits, Bills for Collection and other invisible transactions. However, this is subject to appropriate documentation as provided by extant regulations. The RDAS and interbank funds, he said, should no longer be sold to BDCs and other authorized dealers.

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