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CBN deepens forex rates convergence drive, crashes BDC rate to N360 to sell at N362 only

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All most 24 hours after the Central Bank of Nigeria (CBN) directed Deposit Money Banks (DMBs) in the country to sell foreign exchange obtained from it to retail end-users at not more than N360/$1 for invisibles, the apex bank on Tuesday, March 28, 2017 crashed the rate at which it sells forex to Bureaux De Change (BDCs) in Nigeria to N360 and directed the BDCs to sell to end users at not more than N362/$1.

This came with a stern warning to the BDC operators not to breach the policy to avoid far reaching sanctions.  CBN made it clear that it would not hesitate in sanctioning any erring dealer.

Analysts say the new idea by the bank is a good step in the planned direction of effecting a seamless convergence of the ageless parallel forex rates in no distant time.

Acting Director of Corporate Communications at CBN, Isaac Okorafor, confirmed the directive in Abuja on Tuesday, disclosing that the CBN, under the new policy, will sell forex to the licensed BDCs at the rate of N360/$1, while they will in turn sell to customers at a rate not more than N362/$1.

Okorafor said the objective of the new forex sale policy was to ensure a convergence of the rates in the interbank and BDC, stressing that the CBN remained committed to ensuring transparency in the market as well as fairness to end-users, many of who hitherto experienced challenges in accessing foreign exchange.

In another development, elated spokesman of the apex bank further disclosed to Business Hilights that the sum of $100 million offered to authorized FOREX dealers in the interbank wholesale window to meet the requests of genuine wholesale customers was fully subscribed at the auction on Tuesday, March 28, 2017.

CBN also reechoed its call to all stakeholders to play their respective roles in ensuring a smooth running of the foreign exchange market for the benefit of the Nigerian economy.