CBN begins daily sales of $20,000 at N1,301/$ to BDCs

As part of the efforts to stabilise the forex market, the Central Bank of Nigeria (CBN) has commenced the sale of dollars to Bureau De Change (BDC) operators.

The apex bank in a circular dated Tuesday February 27, 2024 and signed by Dr. Hassan Mahmud, CBN’s Director of Trade & Exchange Department, said $20,000 will be made available daily to eligible BDC operator.

The CBN said it would sell the amount at N1,301 per dollar.

The bank, however, mandated the BDCs to sell to end-users at a margin not more than one per cent above the purchase rate from CBN.

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The statement reads: “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has 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 (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).

“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN.

“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 documentation, for disbursement at the appropriate CBN Branches ABUJA, AWKA, LAGOS and KANO).”

The Star