The Central Bank of Nigeria (CBN) has given the green light for the sale of foreign exchange to eligible Bureau De Change (BDC) operators to cater to the demand for invisible transactions.
According to the directive, each BDC is entitled to purchase $20,000 at the rate of N1,301 per dollar. This rate represents the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of February 27, 2024.
Dr. Hassan Mahmud, the director of the CBN’s trade and exchange department, emphasized that BDCs are permitted to sell to end-users at a margin not exceeding one percent above the purchase rate from the CBN.
This move is part of the ongoing reforms in the foreign exchange market aimed at achieving a market-determined exchange rate for the Naira. Despite recent efforts to unify the exchange rate, retail market distortions persist, impacting the parallel market and widening the exchange rate premium.
To address this, the CBN has authorized the sale of foreign exchange to eligible BDCs specifically for invisible transactions. Mahmud further directed all eligible BDCs to make Naira payments to designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, along with other necessary documentation, for disbursement at the appropriate CBN branches.
