CBN to sanction banks, BDCs for rejecting old, lower dollar notes

CBN moves to harmonise exchange rates

CBN to sanction banks, BDCs for rejecting old, lower dollar notes The Central Bank of Nigeria (CBN) has said it will sanction foreign exchange dealers that reject old and lower denominations of the dollar notes. It gave the warning on Tuesday in a circular to all Deposit Money Banks (DMBs), Bureau De Change Operators (BDCs) and the general public signed by the Director, Currency Operations Department, CBN, Ahmed Umar, titled ‘The rejection of old, lower denomination of United States dollar by DMBs/ forex dealers’. The circular read, “The Central Bank…

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BDCs process N1trn annual deals, says Gwadabe

BDCs process N1trn annual deals, says Gwadabe

BDCs process N1trn annual deals, says Gwadabe     The Association of Bureaux de Change Operators of Nigeria (ABCON) has said that its annual turnover is now N1 trillion. The President, ABCON, Alh Aminu Gwadabe, said this during a virtual event with the theme ‘BDCs’ operations: A trillion-naira sub sector, issues of formalisation, regulations and way forward’ organised by ABCON to beam light on key opportunities and challenges faced by the BDCs sub-sector. It also aimed to reiterate the key roles and position of the BDC subsector in the Nigerian…

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CBN expects foreign reserves’ dip to $29.9bn by year end

Lending rate

Amidst continued pressures on the external sector of the economy, the Central Bank of Nigeria (CBN) has projected a major fall in the country’s foreign reserves to $29.9 billion by the end of 2020 citing decline in oil prices and the impact of the Coronavirus (COVID-19) pandemic. In a report titled, ‘Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2020/2021’, the apex bank stated: “Sequel to the COVID-19 pandemic, the viability of the external sector in 2020 is expected to deteriorate, given the present worsening current account…

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Bureau De Change business not as lucrative as perceived, Gwadabe reveals

Bureau De Change business not as lucrative as perceived, Gwadabe reveals

Bureau De Change (BDC) business in Nigeria is not as profitable as many people often think it is, Alhaji Aminu Gwadabe, president of Association of Bureau De Change Operators of Nigeria (ABCON) has revealed. According to him, the operators earn just N2 gain from every dollar sold, which indicates that at the current rate of N467 per $1 in the parallel market (Lagos), operators earn just 0.43 per cent of the transactions they make. He stated: “The N2 margin earned by BDCs from every dollar sold is barely enough to…

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Naira continues to nosedive despite CBN’s $51.8m intervention; exchanges for N440/$

CBN resumed dollar to BDC

Four days after the Central Bank of Nigeria (CBN) had resumed partial sales of dollar to Bureau De Change (BDC) operators in the country, the local currency, naira, continues to trade on the low side as it exchanged for N440 to a dollar in the parallel market on Thursday. The naira had last week dropped from N480/$ to N420/$, following CBN’s announcement to resume forex sales to the BDCs. Market observers noted that the appreciation recorded by naira was due to release of hoarded forex by market speculators in the…

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Int’l flight resumption triggers CBN to resume dollar sales to BDCs

External reserves

The Central Bank of Nigeria (CBN) has announced that from September 7, it will resume sales of foreign exchange (forex) to Bureau De Change operators in the country. This epochal move is a response by the apex bank to the announcement made on Thursday by the Nigerian Civil Aviation Authority (NCAA) that international flights is expected to unfailingly resume by September 5, following a one-week delay from the initial August 29 date. The Central Bank revealed its plan Thursday in a circular to all authorised dealers, BDCs, and general public…

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