CBN sells $20,000 to each BDC at N1,450/$ for invisible transactions

The Central Bank of Nigeria (CBN) has approved the sales of foreign exchange (FX) to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. 

The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day).

According to the CBN, “All BDCs are allowed to sell to eligible end-users at a margin NOT MORE THAN one point five percent (1.5%) above the purchase rate from CBN.”

This is contained in a circular issued on Thursday by the Trade and Exchange Department of the CBN and signed by A.A Mahdi, for Ag. Director Trade & Exchange Department.

In the circular tagged  “Sales of Foreign Exchange to BDCS to meet Retail Market Demand for Eligible Invisible Transactions”, and reference, TED/FEM/PUB/FPC/001/024 and addressed to all Bureau De Change operators and the general public.

The CBN said, “Following the ongoing reforms in the foreign exchange market, with the objective of achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widen the exchange rate premium.”

The CBN directed all eligible BDCs to make the Naira payment to the listed CBN Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches – Abuja, Awka, Kano and Lagos.

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