The Nigerian Central Bank has declared its intention to offer foreign exchange valued at $20,000 to all qualified Bureau De Change operators nationwide. Continue Reading...
This occurs more over two years after Godwin Emefiele, the former governor of the CBN, halted the foreign exchange sales to BDC operators.
This was revealed by the top bank in a fresh circular that was released on Tuesday, February 27, and was signed by Hassan Mahmud, Director of the Trade and Exchange Department.
"Sale of Foreign Exchange to Bureau de Change Operators to Meet Retail Demand for Eligible Invisible Transactions" is the title of the circular.
It reads: "Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.
To address the demand for invisible transactions, the CBN has authorized the selling of foreign exchange to qualified Bureau De Change. Each BDC is to purchase $20,000 at a rate of N1,301/$-, which is the lower band rate of completed spot transactions at NAFEM for the preceding trading day as of today, February 27, 2024.
"Selling to end users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN is permitted for all BDCs."
Additionally, it instructed qualified BDCs to deposit Naira into the appropriate CBN Foreign Currency Deposit Naira Accounts and to provide proof of payment along with other required paperwork.
"It further states that all qualified BDCs must pay Naira to the designated CBN Foreign Currency Deposit Naira Accounts and provide proof of payment along with other required paperwork for payment disbursement at the relevant CBN Branches in ABUJA, AWKA, LAGOS, and KANO."
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