27th February, 2024
By Kazeem Ugbodaga
The Central Bank of Nigeria (CBN) has begun the sales of dollars to eligible Bureau De Change (BDC) operators to meet the demand for invisible transactions.
This is contained in a circular issued and signed by the Director, Trade and Exchange Department, Hassan Mahmud, on Tuesday.
The circular is titled: “Sale of Foreign Exchange to Bureau de Change Operators to meet retail demand for eligible invisible transactions.”
The apex bank said the move followed the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira.
The banks said it had observed the 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 to meet the demand for invisible transactions,” it said.
The apex bank added that 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 of today, 27th February 2024).
The CBN stated that all BDCs were allowed to sell to end-users at a margin not more than one per cent above the purchase rate from the bank.
It added that all eligible BDCs were directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches in Abuja, Awka, Lagos and Kano.