The Central Bank of Nigeria has resumed the sale of foreign currencies directly to eligible Bureau De Change Operators.
CBN disclosed this in a circular dated February 27, signed by the Director of Trade and Exchange Department, Hassan Mahmud and shared on X account by Bashir Ahmed, a former media aide to ex-president Muhammadu Buhari.
The apex said the move was to meet the demand for invisible transactions.
CBN explained that a sum of $20,000 will be sold to each BDC operator at N1,30 1 per USD.
The bank’s bank added that all BDCs are allowed to sell to end-users at a margin not more than one per cent above the purchased rate.
“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 (CBN) 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 this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
“The sum of $20,000 is to be sold to each BDC at the rate of N1,30 1/$- (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, February 27 2024).
“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one per cent (1%) above the purchase rate from CBN.
“All eligible BDCs are directed to make the Naira payment to the designated CBN ForeignCurrency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches – ABUJA, AWKA, LAGOS and KANO)”, it stated.
Media Talk Africa recalls that CBN had clarified a report indicating that it has not commenced weekly foreign currency sales to Bureau De Change operators.
The development comes amid the continued appreciation of the Naira against the USD in the foreign exchange market.
CBN released a draft regulatory document for BDCs, which banned street trading and increased per capita share for registration, among other things.
Last week, the Economic and Financial Crimes Commission clamped down on illegal BDC in Abuja, Lagos, and Kano States to stabilize the Naira.
Posted in African Business News
