The Central Bank of Nigeria (CBN) has announced a significant move to boost liquidity in the foreign exchange market. In a circular released on Wednesday, the CBN revealed plans to sell dollars to Bureau De Change (BDC) operators at a rate of N1,590 per dollar, with each eligible BDC able to purchase up to $20,000.
This sale aims to meet the growing demand for invisible transactions, such as tuition fees, medical bills, and travel expenses.
According to W.J. Kanya, acting director of the trade and exchange department, BDCs will be allowed to sell the dollars to end-users at a margin of not more than one percent above the CBN’s purchase rate .
This move is expected to provide much-needed relief to the forex market, with BDC operators hailing the decision as a stabilizing force that will enable them to meet customer demands more efficiently.
To participate in this transaction, interested BDC operators must make the required naira payment to the CBN’s deposit accounts and submit necessary documentation at designated CBN branches in Abuja, Awka, Kano, and Lagos.
The CBN has emphasized the importance of adhering strictly to guidelines to ensure a smooth and transparent process.
The statement read in part, “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,” CBN said.
“To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,590/5. This is to meet the demand for invisible transactions.
“All BDCs are allowed to sell to eligible end-users at a margin of NOT MORE THAN one percent (1%) above the purchase rate from CBN
“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN Deposit Account Numbers with them.”
CBN Intervenes in Forex Market: Sells Dollars at N1,590/$
