Connect with us

Banking

CBN begins sales of Forex to bdcs

forex

The Central Bank of Nigeria (CBN) has announced its decision to sell foreign exchange worth $20,000 to each eligible Bureau De Change (BDC) operator across the country.

This is coming more than two years after the former CBN governor, Mr. Godwin Emefiele stopped the sales of foreign exchange to BDC operators in that segment of the foreign exchange market.

The apex bank disclosed this in a new circular issued and signed by the Director, Trade and Exchange Department, Hassan Mahmud, on Tuesday.

The circular stated that the move is aimed at rectifying the persisting distortions in the retail segment of Nigeria’s foreign exchange market and bridging the widening gap in the exchange rate.

It said the allocation would be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market, as of the previous trading day, dated 27th February 2024.

The circular read: “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.

“To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$- (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, 27th February 2024).

“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one per cent above the purchase rate from CBN”.

It further directed eligible BDCs to make Naira payments to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation.

“All eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches Abuja, Awka, Lagos and Kano”, it added.

The CBN in frantic efforts to save the free fall of the naira has made a number of significant reforms towards addressing Naira depreciation, such as probing and clearing foreign exchange backlog, limiting forex for foreign education and medical tourism, increasing BDCs’ minimum share capital, and curbing foreign exchange speculators, among others.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Banking

Adesola Adeduntan resigns as Firstbank MD/CEO

The Managing Director and Chief Executive Officer (CEO) of First Bank Nigeria Limited, Dr. Adesola Adeduntan, has resigned from the bank abruptly to pursue other interests.

Adeduntan‘s tenure is supposed to expire on 31 December, 2024 but he could not wait for that date as he quit to pursue other interest.

The MD, in a resignation letter addressed to the chairman, said “As you are aware, my contract would be expiring on 31 December, 2024, after which I would no longer be eligible for employment within the bank having served as the Managing Director/Chief Executive Officer of FirstBank for a record time of nine years.”

He said during this period the bank and its subsidiaries had undergone significant changes and broken new grounds.

Adeduntan stated that he and his team had repositioned the institution as an enviable financial giant in Africa.

“I have however decided to proceed on retirement with effect from 20 April, 2024, to pursue other interests,” he said.

The bank’s CEO added that he is eternally grateful to the board of directors of FirstBank and FBN Holdings Plc for the support that he received from them during his stewardship.

I wish our iconic institution continue success and progress as we move into the next phase of its evolution. Warm regards,” he said.

Continue Reading

Banking

Oyebanji Engages Bank of Industry on Strategic Development

In a bid to foster robust development in Ekiti State, the Governor of the state, Mr Biodun Oyebanji on Thursday had in a crucial meeting with the leadership of the Bank of Industry Limited, led by Dr. Olasupo Olusi, in Lagos.

At the meeting held at the Head office of the Bank in Marina, Lagos, deliberations revolved around forging prospective collaborations in crucial sectors such as youth empowerment, agricultural revitalization, women’s empowerment, and infrastructural advancement, among others.

Addressing newsmen after the strategic session, Governor Oyebanji emphasized his unwavering commitment to engaging both governmental and non-governmental organizations and agencies in realizing the developmental goals of the state.

Stressing that a strategic partnership with the BOI is crucial in actualizing his administration’s shared prosperity agenda, Governor Oyebanji expressed optimism in the anticipated outcomes of the collaborative efforts, foreseeing positive results in the near future.

“Bank of industry is very critical to our shared prosperity agenda. I can only expect a better collaboration, the critical government officials would be here to take this discussion further. I am extremely excited because of the opportunities it offers our people” Stated the Governor

Governor Oyebanji lauded the Bank of Industry management for their array of programs and initiatives, stressing that the people of Ekiti State are eager for increased presence of Federal Government agencies and development partners in the state.

The BOI MD/ CEO, Dr Olasupo Olusi said the bank is committed to the collaboration between the bank and Ekiti State Government even as he lauded Governor Oyebanji’s development agenda for the state.

“We will ensure a stronger collaboration between Ekiti state Government and Bank of industry. For Governor Oyebanji to be here demonstrates the strong interest in developing the state. Different areas of development have been discussed and we will follow up”, Dr Olusi added.

Present at the meeting by the Commissioner for Budget and Economic Planning and Performance management, Mr Niyi Adebayo and his Industry, Trade and Investment counterpart, Mrs Tayo Adeola as well as the management team of the bank.

Continue Reading

Banking

Cardoso sacks eight CBN directors, 32 others

Governor of Central Bank of Nigeria (CBN), Yemi Cardodo has sacked a fresh batch of 40 staff mostly from the Development Finance Department (DFD), in furtherance of its ongoing restructuring.

According to Daily Trust report, deputy directors and assistant directors were mostly affected with 22 from the DFD and the remaining 18 from the Medicals and Procurement Services Department.

Amongst those affected were eight directors, 10 deputy directors, five assistant directors, two principal managers, and two senior managers.

With the latest number of affected staff, the total has now reached 67, in what appears to be a series by the Olayemi Cardoso-led Board of Governors.

Recall that not less than 27 members of staff, most of them directors at the Central Bank of Nigeria, were affected by the first batch of dismissals.

Continue Reading
Advertisement

Trending