The Central Bank of Nigeria (CBN) has approved the sale of foreign exchange (FX) to eligible Bureau de Change (BDC) operators at a rate of 1,450 naira to a dollar.
According to the apex bank, each BDC is to be sold for $20,000 at the rate of N1,450/$, which represents the lower band of the trading rate at NAFEM on the previous trading day.
Aliyu Mahdi, the Bank’s Acting Director overseeing Trade and Exchange Departments, pointed out that the Central Bank has noted ongoing retail disruptions, contributing to parallel market fluctuations and exacerbating the exchange rate disparity.
“Following the ongoing reforms in the foreign exchange market, to achieve an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widen the exchange rate premium,” Mahdi said in a statement.
“To this end, the CBN has approved the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.”
The Bank directed all BDC operators to sell to qualified end-users with a margin that does not exceed 1.5 per cent above the purchase rate from CBN.
The regulatory body also instructed all eligible BDCs to make naira payments to CBN’s naira deposit account numbers and submit payment confirmation and other necessary documentation for disbursement at its branches in Abuja, Akwa, Kano, and Lagos.