CBN to sell $20,000 to BDCs at N1,590 per dollar

In a move aimed at bolstering the foreign exchange market and meeting retail demand for eligible invisible transactions, the Central Bank of Nigeria (CBN) has announced the sale of foreign exchange to Bureau De Change (BDC) operators.

Dr. W.J. Kanya, Acting Director of the Trade & Exchange Department of the CBN, confirmed that each eligible BDC will receive an allocation of $20,000 at the official rate of N1,590 per dollar.

This intervention is expected to inject additional liquidity into the forex market and stabilize rates for transactions related to personal travel allowances (PTA), business travel allowances (BTA), tuition fees, and medical bills.

This measure is designed to meet the increasing demand for invisible transactions while easing pressure on the naira. The CBN emphasized that BDCs will be allowed to sell foreign exchange to eligible end-users at a margin of no more than 1% above the purchase rate from the CBN.

BDCs interested in participating in the sale must follow established guidelines, including making Naira payments to the CBN Deposit Account Numbers and submitting all required documentation for disbursement at designated CBN branches in Abuja, Awka, Kano, and Lagos.

The CBN’s intervention comes amid growing concerns over the scarcity of forex in the retail segment of the market, where many Nigerians face difficulties meeting their personal and business financial obligations abroad. This move is expected to alleviate the current forex crunch and bring relief to those in need of forex for invisible transactions.

Dr. Kanya urged all eligible BDC operators to adhere strictly to the outlined terms to ensure smooth implementation and compliance. This proactive measure highlights the CBN’s commitment to stabilizing the foreign exchange market and supporting the needs of individuals and businesses reliant on foreign exchange for essential services.

The Bureau De Change operators and the general public are advised to stay informed and comply with the new directives, as this intervention is expected to positively impact the forex market dynamics.

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