The selling of foreign exchange (FX) to qualified Bureau de Change (BDC) operators at a rate of 1,450 naira to the dollar has been allowed by the Central Bank of Nigeria (CBN).
The apex bank stated that each BDC is to get $20,000 at a rate of N1,450/$, which represents the lower range of the NAFEM trading rate from the preceding trading day.
Aliyu Mahdi, the Acting Director in Charge of Trade and Exchange Departments at the CBN,
Read Also: The African Energy Bank headquarters will be hosted by Nigeria.
stated in a statement on Thursday that the apex bank has noticed ongoing inefficiencies at the retail end of the market,
which are feeding into the parallel market and increasing the exchange rate premium.
‘To obtain an acceptable market determined exchange rate in the wake of the current reforms in the foreign exchange market, Observing the ongoing distortions in the retail end of the market,
which are feeding into the parallel market and further widening the exchange rate premium, the Central Bank of Nigeria (CBN) has noted the Naira’s exchange rate.
In order to satisfy the demand for invisible transactions, the CBN has authorized the sale of foreign exchange to qualified Bureau De Changes (BDCs).
All BDC operators are permitted to sell to qualified end users at a margin not to exceed 1.5% over the buy rate from CBN, as stated by the apex bank.
All qualified BDCs were directed by the financial regulator to deposit naira to CBN’s naira deposit account numbers and to provide proof of payment,
along with other required paperwork for distribution at its branches. throughout Lagos, Kano, Akwa, and Abuja.
