By NIyi Jacobs
The Central Bank of Nigeria (CBN) has taken a significant step to stabilize the foreign exchange market by approving the sale of $20,000 to each eligible Bureau De Change (BDC) operator at the rate of N1,590 to a dollar.
This move aims to provide liquidity to the BDC segment of the foreign exchange market and meet the demand for invisible transactions.
In a statement signed by Dr. W. J. Kanya, Acting Director, Trade & Exchange Department of CBN, the apex bank warned that all BDCs are allowed to sell to eligible end-users at a margin of not more than one percent (1%) above the purchase rate from CBN.
To access the funds, eligible BDCs are required to make the Naira payment to the CBN Deposit Account Numbers with them, and submit payment confirmation and all necessary documentation at the appropriate CBN Branches (Abuja, Awka, Kano, and Lagos) for collection of the $20,000.
This move by the CBN is expected to boost the foreign exchange market, stabilize the exchange rate, and curb the widening exchange rate premium observed in the parallel market.
