CBN approves sale of forex to BDCs to meet demand for invisible transactions
The Central Bank of Nigeria (CBN) has approved the sales of foreign exchange (FX) to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
A statement by A. A Mahdi, for the Ag. Director, Trade & Exchange Department of the CBN, dated July 18, 2024, said that “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).”
According to the statement, “all BDCs are allowed to sell to eligible end-users at a margin NOT MORE THAN one point five percent (1.5%) above the purchase rate from CBN.”
The decision, the statement said, came about as a result of the observation by the apex Bank that “following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the Naira,” there have been “continued distortions in the retail end of the market, which is feeding into the Parallel market and further widening the exchange rate premium.”
CBN is, therefore, directing all eligible BDCs “to make the Naira payment to the listed CBN Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches” in Abuja, Awka, Kano and Lagos.
