The Central Bank of Nigeria (CBN) has announced its decision to resume the sale of foreign exchange to eligible Bureau De Change (BDC) operators nationwide, marking the end of a more than two-year suspension initiated by former CBN governor, Godwin Emefiele.
In a recent circular issued by the Director of the Trade and Exchange Department, Hassan Mahmud, the CBN disclosed its plan to allocate foreign exchange worth $20,000 to each eligible BDC operator.
This move aims to rectify distortions in Nigeria’s retail foreign exchange market and narrow the gap in exchange rates. The allocated forex will be sold at a rate of N1,301/$, aligning with the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market on the previous trading day, dated February 27, 2024.
Highlighting the significance of this decision, the circular emphasized that resuming forex sales to BDCs is part of ongoing reforms to achieve a market-determined exchange rate for the Naira.
BDCs are permitted to sell to end-users with a margin not exceeding one percent above the purchase rate from the CBN. Eligible BDCs are required to make Naira payments to designated CBN Foreign Currency Deposit Naira Accounts and provide confirmation of payment, along with necessary documentation, for disbursement at designated CBN branches in Abuja, Awka, Lagos, and Kano.
This resumption of forex sales underscores the CBN’s commitment to addressing the Naira’s decline and stabilizing the foreign exchange market amidst prevailing economic challenges.
