In response to the naira’s depreciation, the Central Bank of Nigeria (CBN) is set to reinstate its weekly dollar intervention for eligible Bureau de Change Operators (BDCs), providing each with approximately $20,000 per week in a exclusively reported by THE WHISTLER.
The intervention will be executed via the bank accounts of the qualified BDCs, who will then distribute the funds electronically to customers requiring BTA/PTA, as well as in cash. This decision was communicated through a memo from the ABCON, following discussions with the Central Bank.
The intervention is scheduled to begin on Monday, February 26, 2024, with funding and collection taking place the following day. Collections will occur at specified CBN branches in Lagos, Abuja, Kano, and Awka. Details regarding the naira account to be credited for funding will be disclosed on Monday.
The CBN is also expected to announce the BDCs eligible for this intervention on Monday, based on specific compliance criteria. A virtual meeting was held by approved BDCs to discuss this new development, and it is understood that the CBN will intervene twice a week.
The intervention will be available to BDCs that have kept up with their annual subscription and monthly returns. BDC operators who failed to pay their annual renewal fees and submit their audited reports for 2022 will not be included in the intervention.
Under the new intervention, BDCs will only sell to individuals going to school or seeking medical treatment (BTA/PTA). They are prohibited from selling to random customers and importers. The CBN will now set the rate at which the BDCs will sell the dollar, a departure from the previous ‘willing buyer, willing seller’ model.
The CBN will establish the selling rate from Monday, and all BDCs are expected to maintain a maximum spread of 2.5 per cent on each dollar sold. BDCs are expected to report their returns by 10 am the day after receiving the intervention from the CBN.
