By InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Friday said it has reviewed upward the weekly forex cash sales to BDCs from $15,000.00 to $30,000.00 per BDC.

The CBN in a circular sighted by InvestAdvocate dated January 23, 2015 and signed by Olakanmi Gbadamosi, director, trade and exchange department said the review will take effect from January 28, 2015.  

“While, the CBN will sell to BDCs weekly at the prevailing interbank rate, the BDCs are expected to sell to the public at not more than 3.5 percent above the CBN selling rate,” the CBN said.

The circular also affirmed that all BDCs are to ensure that the designated accounts in the CBN are duly funded with the equivalent Naira proceeds not later than 48 hours before the bidding date.

“Operators are hereby advised to ensure strict compliance with provisions of the extant regulations on the disbursement of forex cash to their respective customers, as any case of infraction will be appropriately sanctioned,” the CBN added.

On November 25, 2014, the Nigeria’s central bank devalued the naira by eight percent (8%) to N168 to a US dollar. The CBN also raised interest rates to 13 percent by 100 basis points in a view to check losses to its foreign reserves from defending the currency against weaker oil prices.

As at the end of today, the naira declined further when it traded around N208 to a dollar while it has traded between N191 and N208 to a dollar in the last two (2) weeks.

The CBN on Wednesday said it will stop the sale of dollar to BDCs and other authorised buyers.