The Central Bank of Nigeria(CBN) has commenced the sale of foreign exchange to Bureau de Change(BDC) operators, selling $20,000 at N1,301 to the dollar to 1,373 BDCs across the country. This brings the total dollar allocation to the BDCs to $27.46 million.
The apex bank in a circular titled: ‘Sale of Foreign Exchange to Meet Retail Demand for Eligible Invisible Transactions’ issued to all BDC operators, said the N1,301 to the dollar rate quoted was the lower band rate of executed spot transactions at NAFEM as at Tuesday, 27th February 2024.
NATIONAL ECONOMY findings show that, of the 1,373 BDCs that were eligible, 785 received their allocation in Lagos, 376 in kano, 186 in Abuja and 26 in Akwa.
The circular, which was signed by the director, Trade and Exchange department, Dr Hassan Mahmud, stated that, following the on-going reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira, CBN “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.
“All BDCs are allowed to sell to end-users at a margin not more than one per cent (1%) above the purchase rate from CBN. All eligible BOCs 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 in Abuja, Awka, Lagos and Kano.”
