The Central Bank of Nigeria has recently announced its decision to resume the sale of foreign exchange to eligible Bureau De Change (BDC) operators, providing each operator with an allocation of $20,000.
This marks a notable shift, occurring more than two years after the previous suspension by the then CBN governor, Godwin Emefiele.
The circular, signed by the Director of Trade and Exchange Department, Hassan Mahmud, on Tuesday, titled “Sale of Foreign Exchange to Bureau de Change Operators to meet retail demand for eligible invisible transactions,” outlines the objective of rectifying distortions in the retail segment of Nigeria’s foreign exchange market and addressing the widening gap in exchange rates.
The allocated foreign exchange will be sold at a rate of 1,301 naira per dollar, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market from the previous trading day.
Additionally, the statement specifies that BDCs are permitted to sell to end-users at a margin not exceeding one percent above the purchase rate from CBN.
To facilitate the process, eligible BDCs are directed to make Naira payments to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment along with other necessary documentation.
The announcement is part of the Central Bank’s proactive measures to address the distortions in the foreign exchange market, including investigating and clearing foreign exchange backlog, restricting forex for foreign education and medical tourism, raising the minimum share capital for BDCs, and curbing foreign exchange speculation.