Central Bank of Nigeria, on Tuesday, commenced the sale of dollars to Bureax De Change (BDCs).
CBN announced this development in a statement by its Director of Trade & Exchange Department, Dr Hassan Mahmud.
According to the statement, $20,000 will be available to each eligible Bureau De Change (BDC) operator across the country.
The apex bank said the sum is to be sold to each BDC at the rate of N1,301/$, which represents the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as of the previous trading day.
The CBN added that all BDCs are allowed to sell to end-users at a margin not more than one percent above the purchase rate from the apex bank.
The statement read, “Following the on-going 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 documentations, for disbursement at the appropriate CBN Branches ABUJA, AWKA, LAGOS and KANO).”