BDCs not to sell forex at 2 percent margin of purchase – CBN

The Central Bank of Nigeria (CBN) on Tuesday directed Bureau De Change (BDCs) operators not to sell foreign exchange above two per cent margin of the buying rate.

This is contained in a statement from  the Trade and Exchange Department of CBN.

The statement also directed authorised dealers not to sell foreign exchange to any BDC more than a maximum of 30, 000 dollars per week.

According to the statement, a BDC shall nominate its preferred dealer or a bank to procure the said amount from only that bank in a week.

It also said that the selling rate by the dealer to BDCs should be the buying rate from International Money Transfer Operators (IMTO) plus a margin not exceeding 1.5 per cent.

“Foreign exchange cash purchased by BDCs shall be sold to foreign exchange end-users at a rate not exceeding two per cent margin above the buying rate.

“The two per cent margin above shall be applicable to all funds to be retailed by the BDCs regardless of sources of funds,’’ CBN said.

The statement mandated BDCs to render weakly report of purchases from authorised to its trade and exchange department.

It said that funds purchased by BDCs should be eligible for Business Travel Allowance, Personal Travel Allowance, Oversees School Fees and Oversees Medical Fees.

The statement warned that any BDC which violated the above directives would be punished accordingly.