The Central Bank of Nigeria (CBN) has approved the sale of US$20,000 to eligible Bureau De Change (BDC) operators, aiming to increase liquidity in the foreign exchange market. This move is intended to address the rising demand for foreign currency, particularly for invisible transactions such as travel, medical expenses, and school fees.
In a statement signed by Dr. W.J. Kanya, Acting Director of the CBN’s Trade & Exchange Department, the approved sale was announced on September 6, 2024,, under the directive titled “Sales of Foreign Exchange to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions.” The CBN has set the rate at N1,580/$, allowing BDCs to purchase and sell the dollar with a margin of no more than 1% above the CBN purchase rate.
Eligible BDCs are required to deposit Naira into the CBN’s Deposit Account Numbers and submit all necessary documentation at designated CBN branches in Abuja, Awka, Kano, and Lagos to receive their foreign exchange allocation.
This development follows a similar initiative by the CBN in July 2024, when the apex bank resumed FX sales to BDCs after a three-month hiatus. The decision was part of efforts to stabilize the exchange rate, which had seen the Naira depreciate to around N1,600/$ in the parallel market due to dollar scarcity.
The CBN’s reintroduction of FX sales to the informal market underscores its commitment to curbing the volatility of the Naira and maintaining stability in Nigeria’s foreign exchange market.
