The Central Bank of Nigeria (CBN) has announced the sale of foreign exchange (FX) to eligible Bureau de Change (BDC) operators at the rate of N1,590 per dollar to address the demand for invisible transactions.
This move is part of the CBN’s efforts to manage FX liquidity and meet retail market needs.
In a circular titled “Sales of Foreign Exchange to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions,” and signed by W.J. Kanya, the Acting Director of the Trade and Exchange Department, the CBN disclosed that each BDC operator would receive $20,000 at the approved rate.
This sale is aimed at catering to the retail segment, including transactions such as personal travel allowances (PTA), business travel allowances (BTA), and school fees.
The decision reflects the CBN’s ongoing efforts to stabilize the FX market and ensure accessibility for essential transactions amid increasing demand for foreign currency.
This measure comes at a time of heightened pressure on the naira, as the Nigerian economy grapples with fluctuating FX rates and limited dollar liquidity.
It remains to be seen how this latest intervention will affect market stability and ease the challenges faced by businesses and individuals in accessing foreign exchange for critical needs.
The apex bank stated:
“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, 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 (1%) 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.”
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