In its efforts at boosting foreign exchange liquidity within the retail market segment, particularly for personal and business transactions classified as invisible, the Central Bank of Nigeria (CBN) has approved the sale of US$20,000.00 to each eligible Bureau de Change (BDC) operator at the rate of N1,590/$.
This is according to a circular released, Wednesday , September 25, 2024, signed by the Acting Director of the Trade & Exchange Department, Dr. W.J. Kanya.
This brings to the second time the CBN is selling foreign exchange to BDCs this month, and the seventh sale this year.
The rate is N10 higher than the previous rate for the $20,000 sold to each BDCs earlier this month.
According to the circular, the BDC operators are allowed to sell this foreign exchange to eligible end-users at a margin not exceeding 1% above the CBN’s purchase rate.
This directive is intended to ensure transparency and limit excessive profiteering by the operators in the volatile foreign exchange market.
The eligible BDCs interested in participating in this transaction, according to the circular, are to make the necessary naira payment to their respective CBN deposit account numbers.
They are required to submit payment confirmation and all related documentation at designated CBN branches for disbursement of the $20,000.
“This is to inform the Bureau De Change (BDC) Operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market.
“To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,590/$. This is to meet the demand for invisible transactions.
“All BDCs are allowed to sell to eligible end-users at a margin of NOT MORE THAN one percent (1%) above the purchase rate from CBN.
“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN Deposit Account Numbers with them. Also, payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN Branches – (ABUJA, AWKA, KANO and LAGOS) for collection of the US$20,000.00.”