CBN to Resume Sale of Forex to Bureau de Changes on August 31

The Central Bank of Nigeria (CBN) on Thursday said it will resume the sale of the United States dollar to the Bureau de Change (BDC) operators next week.

This is in line with CBN’s previous directive that stated the apex bank will resume the sale of forex immediately the Federal Government opens the nation’s airspace for international flight operations.

In a circular signed by Director Trade and Exchange Department, CBN, O.S Nnaji and directed to all authorised forex deals, BDC operators and the public, the central bank said the sale of forex to BDCs shall be on Mondays and Wednesdays in the first instance.

This, the apex bank said will commence on August 31, 2020, two days after the government will open the nation’s airspace to international flights.

The circular stated: “As part of efforts to enhance accessibility to foreign exchange particularly to travelers following the announcement of the limited resumption of international flights by the Honourable Minister of Aviation commencing with Abuja and Lagos, the CBN hereby wishes to inform the general public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from August 31, 2020.

“Consequently, purchase of foreign exchange shall be on Mondays and Wednesdays in the first instance. The BDCs are to ensure that their accounts with the banks are duly funded with the equivalent Naira proceeds on Fridays and Tuesdays accordingly

“Meanwhile, Authorised Dealers (banks) shall continue to sell foreign currencies for travel related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents (passport, air ticket & Visa).

“All Authorised Dealers and BDC Operators are hereby advised to ensure strict compliance with the provisions of the extant regulations on the disbursement of foreign exchange cash to travellers as any case of infraction will be appropriately sanctioned.”

Investors King’s Note: Forex resumption would ease dollar scarcity and reduce the pressure on the Nigerian Naira in the near-term, especially on the black market. However, sustenance remains a concern given the drop in the nation’s foreign revenue generation and reserves.

Just-In: Please note that in line with the changes made by the Nigerian Civil Aviation Authority to resumption date of international flights, the Central Bank of Nigeria has shifted the commencement date for forex sales to September 7, 2020.

The NCAA, on Thursday, said due to technical issues that airspace would now be opened to international flights on September 5, 2020, and not on August 29 as previously announced.

Musa Nuhu, the Director-General, NCAA said, “Since the announcement by the Minister of Aviation a few weeks ago that international flights will resume anytime from August 29, the aviation sector has worked assiduously to be ready for this date.

“The aviation sector including the airports is ready to resume on the 29th. However, we have other non-aviation logistics we are still working on mostly to do with the COVID-19 protocols, tests, and online platforms.”

The article was edited to reflect the changes made by the CBN and NCAA.