By InvestAdvocate

Lagos (INVESTADVOCATE)- The Central Bank of Nigeria (CBN) on Wednesday said it will stop the sale of dollar to bureaux de changes (BDCs) and other authorised buyers.

This is contained in a circular titled “Utilisation of Rdas and Interbank Funds/Review of the Foreign Exchange Trading Positions of Banks” with reference number TED/FEM/FPC/GEN/01/002 dated January 21, and signed by Olakanmi Gbadamosi, director, trade and exchange department.

Part of the circular reads thus: “This is to inform all authorised dealers that in continuation of the review of developments in the foreign exchange market and to curb speculative demand in the market, both rDAS and interbank funds should henceforth be used, strictly for funding of Letters of Credits, Bills for Collection and Other invisible transactions, subject to appropriate documentation as provided by extant regulations.

Consequently, rDAS and interbank funds no longer be sold to BDCs and other Authorised Buyers.

Meanwhile, the weekly sales of forex to BDCs will be sustained by the CBNbased on the liquidity needs of the market,” the CBN said.

Also, the apex bank affirmed that the Net Foreign Exchange trading position has been reviewed upward, from 0.1% of the “shareholder’s fund” unimpaired by losses, to 0.5% of the “shareholder’s fund”unimpaired by losses.