The Central Bank of Nigeria (CBN) announced on Thursday that it will allow eligible Bureau De Change Operators (BDCs) to purchase foreign exchange (FX) in an effort to meet the increasing demand from businesses.
According to a circular signed by A.A Mahdi, the Acting Director of Trade and Exchange at the CBN, each BDC will be able to buy $20,000 at a rate of N1,450/$1.
The CBN noted that there are ongoing distortions in the retail market, which are spilling over into the parallel market and widening the exchange rate gap, despite recent reforms.
The circular stated, “To this end, the CBN has approved the sales of FX to eligible BDCs to meet the demand for invisible transactions. The sum of $20,000 is to be sold to BDCs at N1,450/$1, representing the lower band of the trading rate at NAFEM on the previous day. All BDCs are allowed to sell to eligible end users at a margin not more than 1.5 per cent above the purchase rate from the CBN.”
