The Central Bank of Nigeria (CBN) has permitted the sale of foreign exchange to qualifying Bureau De Change operators (BDCs) in order to accommodate demand for invisible transactions.
The sum of $20,000 will be sold to each BDC at the rate of N1,301/$ (representing the lower band rate of executed spot transactions at NAFEM for the preceding trading day, as of today, February 27th, 2024).
“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN,” director of trade and exchange department of CBN, Dr Hassan Mahmud, said in a statement.
He said the move was part of the on-going reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira.
Despite recent efforts of the central bank to unify the exchange rate, there had been a continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.
To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$ – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024).
Mahmud said: “all eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentations, for disbursement at the appropriate CBN branches.”