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[ MAIN ]BANKING & FINANCENEWS

CBN Stops Dollar Sales To Currency Dealers

The Central Bank of Nigeria (CBN) on Wednesday, January 21, discontinued the sale of dollars (forex) through the Retail Dutch Auction System (RDAS) and interbank, to Bureau De Change (BDC) operators, as the global oil plunge unleashes further storms.

According to a circular addressed to authorized dealers, signed by CBN Director, Trade & Exchange, Olakanmi Gbadamosi, the weekly sales of forex to BDCs will however, be sustained by the Apex bank based on the liquidity needs of the market.

He explained that decision became expedient for the CBN following the ongoing review of developments in the foreign exchange market and the need to check speculative demand in the market.

Gbadamosi said: “In continuation of the review of developments in the foreign exchange market and to curb speculative demand in the market, both the RDAS and interbank funds should henceforth be used, strictly for funding of Letters of Credits, Bills for Collection and other invisible transactions. It is also subject to appropriate documentation as provided by extant regulations.”

He added both the interbank and RDAS funds should be used for strictly funding of Letters of Credits, Bills for Collection and other invisible transactions.

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