Goodness AdaoyicheFebruary 27, 2024
The Central Bank of Nigeria (CBN) has announced the sale of foreign exchange to Bureau de Change (BDC) operators in the country. The decision is part of the CBN's strategic steps to increase liquidity and strengthen the naira against manipulators. In a memo signed by Hassan Mahmud, the Director of the Trade and Exchange Department at the CBN, it was stated that the CBN would sell the United States dollars to BDC operators at the rate of N1,301 per USD.
BDC operators are expected to sell to customers at not more than 1% above the purchase rate from the CBN. The move is aimed at regulating the foreign exchange market and stabilizing the naira's value.
The Central Bank of Nigeria (CBN) has approved the sale of foreign exchange to eligible Bureau de Change (BDC) operators to meet the demand for invisible transactions. According to a statement by the CBN, each BDC is allowed to purchase $20,000 at the rate of N1,301 per USD. This rate represents the lower band rate of executed spot transactions at NAFEM for the previous trading day as of February 27, 2024.
The directive states that all BDCs are allowed to sell to end-users at a margin not more than 1% above the purchase rate from the CBN. BDCs are directed to make Naira payments to designated CB Foreign Currency Deposit Naira Accounts and submit confirmation of payment, along with other necessary documentation, for disbursement at the appropriate CBN branches in Abuja, Awka, Lagos, and Kano.
This move by the CBN is part of its ongoing reforms in the foreign exchange market to achieve an appropriate market-determined exchange rate for the Naira and address distortions in the retail market.