The Central Bank of Nigeria has disclosed that it will sell dollars to Bureau De Change (BDC) operators at a rate of N1,590 per dollar in order to enhance liquidity in the foreign exchange market.
This measure is aimed to address the demand for invisible transactions and reduce the growing exchange rate premium seen in the parallel market.
The Apex Bank stated that each eligible BDC can purchase up to $20,000 from the Central Bank to address retail market demand for invisible transactions. This initiative aims to ensure sufficient liquidity and respond to the increasing need for invisible transactions in the market.”
The acting director of the trade and exchange department, W. J. Kanya added that BDCs operators are allowed to sell the dollars to end-users at a margin of not more than one per cent above the CBN’s purchase rate. This means that the BDCs cannot make more than N15.59 profit on each dollar they sell to their customers.
Eligible BDC’s interested in the transaction have been directed to make the necessary naira payment to the CBN’s deposit accounts and submit all required documentation at the designated CBN branches in Abuja, Awka, Kano, and Lagos.
BDC operators have welcomed the initiative, expressing that it will offer essential support to the forex market, and it will also help stabilize the market and meet customer demands more effectively.
However, The Central Bank of Nigeria stressed that all operators must strictly follow the guidelines to ensure a smooth and transparent process for accessing the funds.
