CBN Refutes Claims of Selling Foreign Exchange to BDCs at N1,001/$1

The Central Bank of Nigeria (CBN) has strongly denied allegations that it is selling foreign exchange (FX) to Bureau de Change (BDC) operators at the rate of N1,001 to $1. In a statement released on Tuesday, the apex bank clarified its position on the matter, emphasizing that it has not engaged in any such transactions with BDCs since 2021.

The controversy arose when a circular claiming that the CBN had announced the sale of $10,000 to BDCs at the rate of N1,001/$1 began circulating on social media platforms. The circular further stated that the BDCs were required to sell to eligible end users with a margin not exceeding 1.5 percent above the buying cost. However, the CBN swiftly dismissed the circular as 'fake' and urged the public to disregard its contents.

In its official statement, the CBN reiterated that it had ceased selling FX to BDCs since 2021 and that it only sells FX to authorized dealers, such as commercial banks, to meet the legitimate FX demands of their customers. The bank stressed the importance of relying on authentic information from its official website and cautioned against the spread of misinformation that could potentially disrupt the foreign exchange market.

The CBN's stance on the matter comes amidst ongoing efforts to stabilize the foreign exchange market and curb speculative activities. On April 8, the CBN had announced the sale of FX to BDC operators at the rate of N1,101/$, which was in line with its policy to ensure a stable and transparent foreign exchange market.

The apex bank's prompt response to the fake circular has been commended by financial experts, who emphasize the need for accurate and timely information to maintain market stability. They also highlight the CBN's commitment to transparency and its role in managing the country's foreign exchange reserves.

As the nation continues to navigate the challenges posed by the global economic landscape, the CBN remains steadfast in its mission to promote a sound financial system and foster economic growth. The bank's proactive measures to counter misinformation and maintain market integrity are crucial in achieving these objectives.

Key Takeaways

• CBN denies selling FX to BDCs at N1,001/$1, dismisses circulating 'fake' circular.
• CBN ceased selling FX to BDCs in 2021, only sells to authorized dealers like banks.
• CBN emphasizes importance of relying on official information to avoid market disruption.
• CBN's response commended by experts for promoting transparency and market stability.
• CBN remains committed to sound financial system and economic growth amid global challenges.