strong dollar demand Naira 1

Naira Gains After CBN’s BVN Mandate For Dollar Purchase At BDCs

The naira gained 0.89 per cent or N15 per dollar on Wednesday after the Central Bank of Nigeria made it compulsory for Bureau de Change (BDCs) and other eligible forex dealers to sell dollars to only customers with Bank Verification Numbers (BVN).

BDC trade figures show that the naira gained from N1670 to N1655 per dollar at the close of trade.

The gain may, however, be linked to the US Federal Reserves decision on interest rate.

NewsNGR understands that the WSJ Dollar Index weakened slightly against the British pound and Japanese yen.

However, trades on Wednesday reveal that the British pound gained over the naira, rising from N2,210/£ held on Tuesday to N2,220/£ at the BDC segment of the Nigerian Foreign Exchange Market.

NewsNGR reported that the apex bank disclosed on Tuesday through a document titled, ‘Budgetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2024/2025’ that the maximum sales limit by BDCs to individuals will not exceed $5,000.

“All customers desiring to purchase foreign exchange in Nigeria must provide their BVN which must be validated by a CBN Authorised Foreign Exchange dealer through the NIBSS platform before the transactions are consummated,” CBN said.

The CBN also threatened to withdraw licenses of BDCs and dealers that fail to meet the requirements.

CBN said, “Any BDC that fails to provide the required information in its returns or provides an inaccurate BVN shall be penalised, and this shall include withdrawal of its authorised dealership licence.

“BDCs shall continue to observe a maximum foreign exchange cash sales limit of US$5,000.00 (Five Thousand US Dollars Only) per approved transaction, or as may be approved by CBN from time to time.”

The central bank permitted BDCs to continue to source their foreign exchange from members of the public and any other source as may be prescribed by the CBN.

“The CBN shall continue to monitor the activities of the BDCs to ensure that no operator is in violation of the anti-money laundering laws,” it added.

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