The Central Bank of Nigeria (CBN) has greenlit a second tranche of foreign exchange (FX) sales to eligible Bureau De Change (BDC) operators to address their needs for invisible transactions. This announcement came during a recent event hosted at the Nigerian Exchange Group.
Under the latest intervention, each BDC will receive $10,000 at the rate of N1,251/$, marking a N50 reduction compared to the initial tranche. Additionally, the CBN has halved the allocation to $20,000 per BDC, as compared to the previous allocation in February.
In a letter addressed to the President of the Association of Bureau De Change Operators of Nigeria (ABCON), dated March 25, 2024, and signed by Dr. Hassan Mahmud, Director of the Trade and Exchange Department at the CBN, the bank outlined these allocations and instructed BDC operators to sell FX to end-users at a spread not exceeding 1.5% above the purchase price.
The CBN warned of sanctions, including suspension, for any BDC found breaching the terms of sale to end-users. The bank’s intervention addresses price distortions in the retail market and complements ongoing reforms in the foreign exchange market to achieve a market-determined exchange rate for the naira.
Meanwhile, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) commended the CBN’s clearance of a $7 billion forex backlog but reiterated the need for drastic steps to address unmet forex requests by private sector operators.
NACCIMA President, Dele Oye, highlighted challenges faced by members in accessing forex, including prolonged retention of funds in naira without communication from banks or the CBN. Oye called for a transparent approach to resolving remaining forex allocations and emphasized the importance of direct engagement between affected parties and the CBN.
As dialogue continues, NACCIMA appeals for collaboration between the CBN, the Ministry of Industry, Trade, and Investment, and the banking sector to resolve outstanding forex issues and ensure continuity in government obligations.
