The Central Bank of Nigeria has announced it will sell $20,000 in foreign exchange to eligible Bureau De Change operators nationwide.
This was disclosed by the apex bank in a statement signed by the Acting Director of Trade and Exchange Department, Dr W. J Kanya, on Wednesday.
The CBN stated that the sale of $20,000 to eligible Bureau De Change operators will help them meet retail market demand for eligible invisible transactions.
This intervention follows a notable drop in the value of the naira, which fell to N1,658.48 against the dollar in the Nigerian Autonomous Foreign Exchange market.
At the parallel market, BDCs operators are selling the dollar at a rate of N1,670.
The statement read, “This is to inform the Bureau De Change Operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market.
“To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,590/$. This is to meet the demand for invisible transactions.”
The CBN,however, warned that operators must not sell above one percent of the purchase rate.
This means that Bureau De Change operators cannot make more than N15.59 profit on each dollar they sell to their customers, in line with the CBN’s directive to limit markup to one percent of the purchase rate.
This measure is expected to address the demand for invisible transactions and curb the widening exchange rate premium observed in the parallel market.
“All BDCs are allowed to sell to eligible end-users at a margin of NOT MORE THAN one percent above the purchase rate from CBN.
“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN Deposit Account Numbers with them.
“Also, payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN branches (Abuja, Awka, Kano, and Lagos) for collection of the $20,000.00. Please be guided accordingly,” the statement concluded.
This marks the seventh attempt by the Central Bank of Nigeria to sell foreign exchange to Bureau De Change operators after a prolonged suspension that began in 2021.
The ban was lifted earlier this year following the revocation of licenses for over 4,173 BDC operators in February.
This move aims to streamline the market and enhance liquidity in the foreign exchange system.
