Nigeria’s Central Bank Injects $20,000 into Foreign Exchange Market

The Central Bank of Nigeria (CBN) has announced a move to boost the country’s foreign exchange market by selling $20,000 to each eligible Bureau De Change (BDC) operator at a rate of N1,590 per dollar. The announcement was made in a circular dated September 25, 2024, signed by W.J. Kanya, Acting Director of Trade and Exchange Department.

According to Kanya, the move is aimed at providing additional liquidity to the foreign exchange market, particularly for invisible transactions. The CBN has approved the sale of $20,000 to each eligible BDC operator at the rate of N1,590 per dollar, which is expected to meet the demand for foreign exchange.

The BDC operators are allowed to sell the foreign exchange to eligible end-users at a margin of not more than one percent above the purchase rate from the CBN. To participate in this transaction, eligible BDCs must make naira payment to the CBN deposit account numbers provided and submit payment confirmation and necessary documentation for disbursement at the appropriate CBN branches in Abuja, Akwa, Kano, and Lagos.

This development is expected to have a positive impact on the foreign exchange market in Nigeria, providing more liquidity and stability to the system. The move is also expected to benefit individuals and businesses that rely on foreign exchange for their transactions.