CBN approves sale of dollars to eligible BDCs at N1,450/$1

In a bid to meet the demand for foreign exchange transactions, the Central Bank of Nigeria (CBN) has approved the sale of foreign exchange (FX) to qualified bureaux exchange (BDC) operators at a rate of N1,450|$1.

Eligible BDCs will be allowed to purchase up to $20,000 but must sell it to eligible end-users at a margin of no more than 1.5 percent above the purchase price from the CBN.

This development was contained in a statement signed by AA Mahdi, Acting Director of the CBN Department of Trade and Exchange, on Thursday.

The central bank said it had observed persistent distortions in the retail market, which were feeding into the parallel market and further widening the exchange rate premium.

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“Following the ongoing reforms in the foreign exchange market, with the aim of achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed continued distortions in the retail market, which are affecting the Parallel market and further widening the exchange rate premium,” the CBN said.

“To this end, the CBN has approved the sale of foreign exchange to qualified Bureaux Exchange (BDCs) to meet the hidden transaction demand.

“A total of $20,000 will be sold to each BDC at a price of N1,450/$ (which was the lower limit of the trading price on NAFEM on the previous trading day).”

The financial regulator instructed all eligible BDCs to make naira payments into CBN naira deposit account numbers and submit confirmation of payment with other necessary documentation for disbursement at appropriate CBN branches in Abuja, Akwa, Kano and Lagos.

By: Babajide Okeowo

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