In a bid to increase foreign exchange liquidity and meet market demand, the Central Bank of Nigeria (CBN) has approved the sale of $20,000 each to Bureau De Change (BDC) operators at a rate of N1,580/$. This move is aimed at addressing the demand for invisible transactions, such as personal travel allowances, educational expenses, and medical bills.
The CBN disclosed this in a statement signed by the Director of Trade & Exchange department, Dr. W.J Kanya. According to the statement, BDCs are required to sell to eligible end-users at a margin not exceeding 1% of the purchase rate. This means that BDCs can sell to end-users at a rate not higher than N1,608/$ (N1,580/$ + 1% margin).
Interested BDCs are required to make payments to CBN deposit accounts to qualify for the forex allocation. The CBN has approved the allocation of $20,000 to each qualified BDC at an exchange rate of N1,580 per dollar.
This move is seen as a positive step by the CBN to increase forex liquidity in the market and meet the demand for invisible transactions. It is also expected to help stabilize the exchange rate and reduce the pressure on the naira.
The CBN has been taking various measures to manage the forex market and stabilize the exchange rate. Recently, the bank introduced a new forex trading platform, the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX), to provide a more transparent and market-driven exchange rate.
The CBN has also been working to reduce the demand for forex by encouraging businesses to source their inputs locally and promoting the use of local currencies for international transactions.
