The Central Bank of Nigeria (CBN) has announced the provision of additional U.S. dollars to Bureau De Change (BDC) operators to boost liquidity in the foreign exchange (forex) market.
This decision was communicated through a circular issued by the Trade and Exchange Department of the CBN, titled TED/FEM/PUB/FPC/001/028, yesterday.
The circular, signed by Acting Director of the Trade and Exchange Department, Dr. W. J. Kanya, informed all BDC operators and the general public of the apex bank’s approval for the sale of $20,000 to each eligible BDC operator at an exchange rate of N1,590 per dollar.
The funds are intended to meet demand for eligible invisible transactions, such as personal travel allowances, business travel allowances, tuition fees, and medical bills, among other non-physical imports.
According to the CBN’s directive, BDC operators are required to sell forex to eligible end-users at a margin not exceeding one per cent above the purchase rate from the CBN. This measure aims to ensure that retail customers can access foreign exchange at fair rates, preventing undue price hikes and speculation in the retail market.
Eligible BDCs interested in purchasing the $20,000 from the CBN have been directed to make their Naira payments into designated CBN deposit accounts.
The payment confirmation, along with all necessary documentation, is to be submitted to CBN branches in Abuja, Awka, Kano, and Lagos for disbursement of the funds.
The CBN’s intervention in the forex market comes amid ongoing efforts to stabilize the Naira and provide adequate liquidity for legitimate transactions. By supplying the BDC segment of the market with additional dollars, the apex bank aims to address shortages and ease pressure in the retail segment, where individuals and small businesses often face challenges in accessing forex.
This announcement is part of a broader strategy by the CBN to manage the forex market and support economic activities reliant on the availability of foreign currency.
The sale of forex at a regulated margin also aligns with the bank’s commitment to maintaining a stable exchange rate while ensuring that BDCs remain a viable source of foreign currency for everyday transactions.
The move is expected to provide significant relief to Nigerians and businesses engaged in international trade or seeking foreign exchange for various permissible activities.
The Nation
