The Central Bank of Nigeria (CBN) has approved the sale of dollars to Bureau de Change (BDC) operators at N1,580 per dollar, providing each BDC with $20,000 to enhance market liquidity. This move aims to address the demand for invisible transactions amidst ongoing economic challenges.
The Central Bank of Nigeria (CBN) has taken a significant step to enhance liquidity in the foreign exchange market by approving the sale of dollars to Bureau de Change (BDC) operators at the rate of N1,580 per dollar. This decision was announced in a circular signed by W.J. Kanya, acting director of the Trade and Exchange Department, on September 6.
Under this new directive, each eligible BDC is allowed to purchase foreign exchange (FX) amounting to $20,000, a move aimed at meeting the rising demand for invisible transactions such as travel allowances and tuition fees. The CBN emphasized that this initiative is crucial for bolstering liquidity in the market.
The apex bank stipulated that BDCs can sell FX to eligible end-users with a margin not exceeding 1% above the purchase rate, ensuring affordability for consumers. Interested BDCs are required to make naira payments to specified CBN deposit accounts and submit the necessary documentation for disbursement at designated branches in Abuja, Awka, Kano, and Lagos.
This latest approval follows a previous decision made on July 18, where the CBN had authorized the sale of FX to BDC operators at N1,450 per dollar. The ongoing efforts by the CBN reflect its commitment to stabilizing the currency market and addressing the economic challenges facing the nation, particularly amid persistent inflation and exchange rate volatility. Stakeholders in the industry remain cautiously optimistic about the potential impacts of these measures on Nigeria’s economic recovery.
