The Central Bank of Nigeria (CBN) has approved the sale of foreign exchange (FX) to eligible Bureau De Change (BDC) operators at a rate of N1,590 per dollar, aiming to meet the growing demand for invisible transactions.
The announcement, signed on Wednesday by W.J Kanya, the acting director of the trade and exchange department, was made through a circular titled ‘Sales of Foreign Exchange to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions.’
As part of this initiative, the apex bank has authorized the sale of $20,000 to each qualified BDC, providing additional liquidity to this segment of the FX market.
The circular reads 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. 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 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” the CBN states.
This move is expected to ease pressure on the retail forex market and improve access to FX for invisible transactions, which include personal travel allowances, medical bills, and tuition payments.
Payment confirmation and relevant documentation for disbursement are meant to be submitted to the CBN branches in Abuja, Awka, Kano, and Lagos for collection.
