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Difference Between WDAS & RDAS



The Central Bank recently introduced sweeping Foreign Exchange guidelines that is expected to eliminate or drastically reduce money laundering as we approach another election cycle. One of the changes announced was the replacement of the Wholesale Dutch Auction System (WDAS) with the Retail Dutch Auction System (RDAS) . In this blog post, I will attempt to differentiate between the WDAS and the RDAS.

What is a Dutch Auction System?


According to Investopedia A Dutch Auction System is

  1. A public offering auction structure in which the price of the offering is set after taking in all bids and determining the highest price at which the total offering can be sold. In this type of auction, investors place a bid for the amount they are willing to buy in terms of quantity and price.

  2. A type of auction in which the price on an item is lowered until it gets a bid. The first bid made is the winning bid and results in a sale, assuming that the price is above the reserve price. This is in contrast to typical options, where the price rises as bidders compete.

To break it down further, for example, the CBN during its auction offers a total dollar sale of $200M. The apex bank offers foreign currency twice a week to keep the naira within a range of three percentage points above or below ₦155 per dollar. With this in mind Authorised Dealers who have various needs for dollars approach the auction for dollar purchase. Some may be willing to buy $20M, others $10M etc. So during the auction each Authorised dealer tables an offer that may be below the ₦155/$1 or above it depending on the forces of demand and supply. Therefore if there are more bids above the CBN’s preferred ₦155 those bidders get to buy dollars while those who bid below lose out and vice versa.

At the end of the Bid the CBN releases its results in its website. The last Bid for WDAS which took place on September 30 was announced as follows

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Auction No 9/30/2013 held on 74
Total Amount Offered US$ 300,000,000.00
Total Amount Demanded US$ 0.00
Total Amount Sold US$ 300,000,000.00
Highest Successfull Bid Rate US$ 155.78
Lowest Bid Rate 155.75
No. of Successful 17
No. of Unsuccessful 0
Marginal Bid US$ 155.75
Number of Banks 17
Who are the Authorised dealers?
The Authorised Dealers as the name implies are approved primary buyers of dollars from the CBN. They are dealers who have the authority to submit bids on behalf of the Bureau De Change (BDC) to the CBN for purchase of forex. Most commercial banks are registered Authorised Dealers with the CBN.
Now I get it. So What is WDAS?
WDAS is an acronym for the Wholesale Dutch Auction System. It is a subset of the Dutch Auction System whereby the CBN receives bids from Authorised Dealers for purchase of forex. The Authorised Dealers on behalf of BDC’s and other end users of forex (like corporates, importers etc) will submit bids to the CBN for purchase of forex during an auction. Once their bids are successful they then sell the dollars to the BDCs and other end users. The WDAS was introduced on on February 20, 2006. It is important to note however, that under the WDAS the Bids submitted by the Authorised Dealers need not match the total request by its end users. For example, the Authorised Dealers can purchase $2million from the CBN during an auction even though it only had confirmed requests of $1million from its BDC’s and other end users. Being a Wholesale Dealer it believe it can continue to sell the balance $1million (in the interbank market) as the need arises without having to go back to wait for another auction to Bid.
How does this process work?
According to the CBN the process works this way;

Private BDCs

  •   Each licensed BDC was required, to open a Naira Current Account with an Authorized Dealer of its choice, for the purpose of buying forex.
  •  A Bureau-de-Change is allowed to purchase forex from the CBN through a presentation of the CBN cheque issued by their banks twice a week (Tuesdays and Thursdays).
  • The Bureau-de-Change purchase equivalent amount of forex from the CBN up to a maximum limit of US$200,000.00 twice a week.

Authorized Dealer BDCs

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  • The Authorized Dealer applies to CBN through the WDAS window on Mondays and Wednesdays for a maximum of US$2.0 million.
  • The forex purchased by the Authorized Dealers is disbursed in cash and the BDCs in turn sell to end-users for eligible transactions only, such eligible transactions include:
    • BTA at $5,000 per quarter and $20,000 per annum;
    •  PTA at $4,000 per quarter and $16,000 per annum; and others include:
      • Mortgage monthly payment;
      • School fees abroad;
      • Medical fees abroad;
      • Credit Card payment;
      • Utility bills; and
      • Life Assurance premium payment.

So What is the RDAS?

The RDAS is an acronym for the Retail Dutch Auction System and as the name implies is a direct sale of Forex by the CBN through the banks to the end users of the forex. Unlike the WDAS, the RDAS is based solely on actual demand of forex by the end users of the forex. As such, the Authorised dealers will only bid for forex based on the number of actual request it has received from its end users. For example, if an Authorised Dealer has received only $1million of confirmed dollar requests from its BDC’s and other end users it can only then bid for that $1million from the CBN auction unlike the WDAS where it can bid for more.

This is essentially Micro-managing??

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Yes it is! The re-introduction of the RDAS is an effort by the CBN to micro-manage the sale and utilisation of forex in Nigeria.

Are there other essential differences between the RDAS and the WDAS?

Well, the CBN in their website differentates the two as follows;

  1. under the retail DAS, end-users were allowed to bid through their banks.
  2. under the WDAS, Authorised Dealer banks, bid on their accounts and the successful banks would then sell to their customers.

So what are the advantages of the RDAS?

The RDAS is basically a controlled form of forex transactions. By introducing this the CBN hopes to micro manage the sale and usage of forex. Some of the advantages are as follows

  1. Only confirmed users of forex for legitimate uses will have access to forex
  2. Round tripping is expected to be reduced as forex bought from the CBN is essentially monitored and can’t be used for reason other than those specified during bid application
  3. Banks will not be able to speculate in the interbank market as all banks will basically know that the dollars bought in any particular auction will be utilised fully before the next auction
  4. It will be difficult to sell forex bought from the CBN to the parallel market

Surely, the RDAS has some disadvantages too doesn’t it?

Well, we can start by looking at the advantages of the WDAS which is the reason why the CBN replaced the RDAS in 2006. However, there really isn’t many as the major difference between the two is that of control. If you therefore are against tight regulations then you will dislike the RDAS and vice versa.

But there is still one major disadvantage that the RDAS has which is that by virtue of its limited status it can create an artificial scarcity of forex. Because the CBN only sells forex to confirmed users other arbitrary users of forex will not be able to buy readily. For example, if you suddenly need to buy $10,000 cash for a transaction, you will have to buy only from a BDC who has that forex. Since, their activities are now heavily regulated it is likely that they may not have as they may have been expected to sell off their stock piles already.

This in turn fetes a parallel market. Therefore, it is likely that importers of forex like tourist or travellers will more than likely sell forex at higher rates to the black market than they would if they sell to the BDC.

Even the CBN acknowledges this point when they touted one of the major achievements of the WDAS. According to them “Sale of Foreign Exchange to Bureaux-de-Change operators in an effort to increase access of foreign exchange to small end-users, bridge the supply gap and develop the local Bureaux-de-Change (BDCs)“.

The New CBN guidelines re introducing the RDAS also introduced new guidelines. Their disadvantages or advantages depends on what side of the glass you are in. They are as follows;

  • Authorised Dealers/Banks will no longer have substantial stock pile of dollars to meet the insatiable need of forex by customers
  • The CBN will have to dedicate enormous resources towards micro managing the activities of the Authorised Dealers and the BDC’s
  • Authorised Dealers and BDC’s will also have to fill huge amount of paper work brought thus increasing their operational cost
  • Authorised Dealers will continue to sell dollars to the maximum of $250,000 per week to BDC’s. However, KYC forms of the BDC’s will need to be filed and updated regularly.
  • Importer and Exporters of products and services who rely regularly on forex will now need to also dedicate time and resources to strict documentation processes.
  • Increasing scrutiny in the application and usage of forex by all parties. The CBN scrutinises the Authorised Dealers who in-turn scrutinise the activities of the BDC’s and the End users etc.
  • Debit/ Credit card transactions in forex has now been increased from $40,000 per annum to $150,000 per annum. This means if you are traveling you no longer need to buy forex from the black market. With your local debit cards you can go to any ATM abroad to withdraw forex at the prevailing exchange rate locally.
  • Beneficiaries of Western Union and other money transfer networks can only now receive cash in Naira rather than in forex.
  • Corporates who import dollars into the country through banks will now have to declare this import and reasons for brining it in. The forex imported will be converted to Naira immediately upon entry and a Certificate of Capital Importation (CCI) will be issued immediately. Before now, importers of forex need not apply for a CCI.
  • Importers intending to pay for imports of non-regulated products of not more than $250,000 per annum using telegraphic transfers shall only complete the “e-Form M online” supported with a pro forma invoice. However, shipping documents must be submitted by the importer through its processing bank not later than 90 days from the date of the transfer.

Like I mentioned, a lot of these new developments may seem like an over kill or necessary depending on your informed perspective.




Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.



  1. Francis Ejike

    January 26, 2015 at 11:49 pm

    The question is ; Do we necessarily need to introduce the RDAS in our present circumstance that the value of naira is dropping too fast.
    We have devalued but no export products to win more F/X for the country. So a lot more challenges will rear their heads.
    Unfortunately too, the only product {Oil}price{s} are low due to circumstances beyond our control.
    The question above becomes more relevant when we know that this is an import oriented country. Consequently we are going to have or we have more F/X arbitrary buyers.This is not due to import oriented contry issue but as a result policies in duty payment, current election isuues and bmore. So the primary effect of more demand than supply will push up the price,beyond acceptable limits.

  2. Anonymous

    April 24, 2016 at 10:18 pm

    Thanks a lot! This was really helpful.

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COVID-19 Update in Nigeria

On the 8th of July 2020, 460 new confirmed cases and 15 deaths were recorded in Nigeria.



The spread of novel Corona Virus Disease (COVID-19) in Nigeria continue to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 30,249 confirmed cases.

On the 8th of July 2020, 460 new confirmed cases and 15 deaths were recorded in Nigeria, having carried out a total test of 169,629 samples across the country.


To date, 30,249 cases have been confirmed, 12,373 cases have been discharged and 684 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 169,629 tests have been carried out as of July 6th, 2020 compared to 152,952 tests a day earlier.

COVID-19 Case Updates- 8th July 2020,

  • Total Number of Cases – 30,249
  • Total Number Discharged – 12,373
  • Total Deaths – 684
  • Total Tests Carried out – 169,629

According to the NCDC, the 460 new cases were reported from 21 states- Lagos (150), Rivers (49), Oyo (43), Delta (38), FCT (26), Anambra (20), Kano (20), Plateau (18), Edo (14), Bayelsa (13), Enugu (13), Osun (12), Kwara (10), Borno (8), Ogun (7), Kaduna (6), Imo (4), Bauchi (3), Gombe (3), Niger (2), Adamawa (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,670, followed by Abuja (2,348), Oyo (1,573), Edo (1,503), Delta (1,323), Kano (1,291), Rivers (1,284), Ogun (1,057),  Kaduna (889), Katsina (628), Borno (563), Ondo (550), Gombe (524), Bauchi (519), Ebonyi (503), Plateau (478), Enugu (431), Abia (400),  Imo (356), Jigawa (318).

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Kwara state has recorded 307 cases, Bayelsa (282), Nasarawa (234), Osun (210), Sokoto (153),  Niger (124), Benue (121), Akwa Ibom (112), Adamawa (100), Anambra (93), Kebbi (86), Zamfara (76), Yobe (61), Ekiti (45), Taraba (27), while Kogi and Cross River state have recorded 5 cases each.


READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 8, 2020302494606841512373171927
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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Update: FG suspends reopening of schools, students won’t write 2020 WAEC exams

The Minister of Education, Adamu Adamu, said that WAEC should suspend exams.



The Federal Government has just announced that schools under its control will not be reopening for the forthcoming West African Examination Council (WAEC) exams.

This was disclosed in a tweet post by the aide to President Muhammadu Buhari on New Media, Tolu Ogunlesi from his official Twitter handle on Wednesday, July 8, 2020.


According to Ogunlesi, the Minister of Education, Adamu Adamu, said that WAEC should suspend exams and also urges State Governments to toe the line of the Federal Government as this is not the right time to reopen.

According to the tweet post, ‘’Minister of Education has just announced that schools under control of the Federal Government will not be reopening for the forthcoming WAEC exams. Says WAEC should suspend exams and urges State Governments to toe Federal Government line. This is not the right time to reopen,’’

Adamu, while addressing state house correspondents after the virtual Federal Executive Council meeting on Wednesday, July 8, 2020, said that none of the schools under the control of his ministry will resume until schools are considered safe enough

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The Minister appealed to the State Governments that have already announced the resumption of schools to reconsider that as it is not safe and the students should be protected. He said that he would prefer that students lose an academic year than expose them to dangers.

He also debunked an earlier report that claimed that the Minister of State for Education, Emeka Nwajiuba, announced that schools will be resuming on August 4, 2020. Adamu said that the Minister of State must have been misquoted as the schools under the supervision of the ministry will not be opening on August 4 or anytime soon.

Going further, Adamu pointed out that WAEC will not determine what Nigeria will do as he will rather have the country lose a school year than exposing the students to danger.

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Tech News

Tizeti reinstates Kendall Ananyi as CEO after investigation into alleged sexual misconduct

The investigations into the allegations could not establish a case of sexual harassment, .  



Tizeti, MainOne extend partnership to expand highspeed WiFi services in Africa, Tizeti reinstates Kendall Ananyi as CEO after investigation into alleged rape

Following the conclusion of the independent special investigation, Tizeti Board of directors have reinstated Kendall Ananyi as Chief Executive Officer.

With this development, the interim Co-CEOs Ifeanyi Okonkwo and Patricia Aiyedun, will return to their respective positions as Chief Operating Officer, and Chief Financial Officer.


According to a statement published on its website, the company stated that investigations into the allegations of sexual harassment could not establish a case of sexual harassment.

The board had on June 7 appointed an Independent Special Investigation Committee of its Board of Directors to investigate allegations of sexual harassment made against Kendall Ananyi, the embattled CEO.

To ensure the independence of the committee, the CEO stepped down and was walled off from communications with the Independent Special Investigation Committee and any matters related to the investigation, the statement read.

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READ MORE: Segun Agbaje elected into PepsiCo Board of directors

After a month of investigations, the committee led by Senior Advocate of Nigeria Olumide Sofowora, SAN, C.Arb. of Olumide Sofowora Chambers, stated that no clear case of sexual harassment had been established, and recommended that the CEO be reinstated.

According to the statement, the committee researched “what actions would constitute sexual harassment, gathered relevant information from a number of sources in both Nigeria and Ghana, and conducted a number of interviews, including separately interviewing both the accuser and Mr. Ananyi”.

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It was based on this that the independent legal counsel concluded that a clear case of sexual harassment had not been established.

The company promised that a sexual harassment policy would be put in place going forward.

“Tizeti remains fully committed to high ethical standards, gender equality, providing a workplace that is free from sexual harassment and ensuring that its diverse team feels comfortable and safe at all times.

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“Tizeti wants to ensure that it has best in class policies and procedures going forward.  As a result, Tizeti will be updating its code of conduct and putting in place a sexual harassment policy that is in line with best practices and encourages the reporting of any potential incidents,” it said.


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