Nigeria moves to stablise naira rate, prescribes 2 pct margin for BDCs on fx trade

In a bold move to stabilise the naira exchange rate and narrow the margin between official interbank and parallel market rate of the naira, the Nigeria's central bank on Tuesday directed Bureau De Change operators not to sell foreign exchange above two per cent margin between their buying and selling rate.
The bank Acting Director, Trade and Exchange W.D Gotring said in a statement  that commercial lenders are not to sell foreign exchange to any BDC more than a maximum of $30, 000 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 plus a margin not exceeding 1.5 per cent.
It said, “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.’’
The statement mandated BDCs to render weekly 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.