The Central Bank of Nigeria (CBN) has sustained the sale of foreign exchange (FX) to eligible Bureau de Change (BDC) operators at N1,450/$1 to meet the growing demand for FX transactions in the country.
The apex bank, in a circular to the BDC operators signed on Thursday by A.A Mahdi, for the Acting Director, Trade And Exchange Department, indicated that the apex bank had 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.
He clarified: “Following the on-going reforms in the foreign exchange market, with the objective of achieving 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.
“To this end, the CBN has approved the sales of FX to eligible Bureau De Change (BDC) to meet the demand for invisible transactions.
“The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day)”, the Director added.
According to the apex bank, all BDCs are allowed to sell to eligible end-users at a margin not more than 1.5% above the purchase rate from it.
The CBN also instructed all eligible BDCs to make Naira payments to its Naira deposit account numbers and submit confirmation of payment with other necessary documentation for disbursement at its appropriate branches in Abuja, Akwa, Kano and Lagos.
