The Central Bank of Nigeria (CBN) has announced the resumption of dollar sales to Bureau de Change (BDC) operators, in a bid to resolve the persistent distortions in the foreign exchange market.
In a circular signed by A.A Mahdi, Acting Director of the Trade and Exchange Department of the CBN, on Thursday, it addressed all Bureau de Change operators and the general public, adding that it seeks a more stable exchange rate for the Naira.
The apex bank said it “observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widening the exchange rate premium.”
Mahdi added that under the new guidelines, qualified BDCs may obtain a maximum of $20,000 at a fixed rate of N1,450 to the dollar. This rate is fixed against the lower band of the previous day’s trading rate on the Nigerian Autonomous Foreign Exchange (NAFEX) window. The BDCs are permitted to sell dollars to eligible end-users at a maximum margin of 1.5 percent above the purchase rate from the CBN.
BDCs are required to pay in Naira into specified CBN accounts and submit the receipts for disbursement at specified branches in Lagos, Akwa, Kano, and Abuja.