The Central Bank of Nigeria (CBN) announced on Thursday that it has sold foreign exchange to eligible Bureau De Change (BDC) operators at the rate of N1450 per dollar. This decision was revealed in a statement signed by AA Mahdi, the acting director of the Trade and Exchange Department at the CBN.
This sale comes shortly after the CBN’s recent intervention in the forex market, where it sold $123 million to authorized dealers. The Association of Bureau De Change Operators of Nigeria (ABCON) had expressed dissatisfaction with their exclusion from that tranche of sales. ABCON’s President, Aminu Gwadebe, told The PUNCH that only banks benefited from the previous forex intervention.
In response to the concerns raised, the CBN has now approved the sale of foreign exchange to BDCs. Each eligible BDC will receive $20,000 at a rate of N1450 per dollar, which is aligned with the lower band of the trading rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) from the previous trading day.
The CBN clarified that this measure is part of its ongoing reforms aimed at stabilizing the foreign exchange market. The bank noted, “It has observed the continued distortions in the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.” By selling forex to BDCs, the CBN aims to address these market distortions and ensure a more balanced and transparent exchange rate system.
The CBN also issued a stern warning to BDC operators, instructing them to sell the foreign exchange to eligible end-users at a margin not exceeding 1.5 percent above the purchase rate. This directive is intended to curb excessive profiteering and ensure that the benefits of the forex sales reach the intended consumers.
This intervention by the CBN is expected to help meet the demand for invisible transactions and contribute to the overall stability of the Nigerian foreign exchange market.
