The Central Bank of Nigeria (CBN) has taken decisive steps to stabilize the foreign exchange (FX) market by approving the sale of forex to Bureau De Change (BDC) operators at a rate of N1,450 per dollar.
This move aims to address distortions in the retail segment of the market and curb the widening exchange rate gap.
In a statement issued on Thursday by A.A Mahdi, acting director of CBN’s Trade and Exchange Department, the apex bank expressed concerns over persistent disruptions in the retail FX market, which have contributed to disparities in exchange rates and bolstered activities in the parallel market.
The statement highlighted the ongoing reforms in the FX market aimed at achieving a more market-determined exchange rate for the Naira.
As part of these efforts, CBN approved the sale of $20,000 to each eligible BDC at the rate of N1,450/$, reflecting the lower band of the trading rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) from the previous trading day.
“All BDCs are mandated to sell to eligible end-users with a margin not exceeding 1.5 percent above the purchase rate from CBN,” the statement clarified.
Furthermore, the CBN instructed eligible BDCs to remit naira payments to designated CBN naira deposit accounts and submit necessary documentation for disbursement at specified CBN branches in Abuja, Akwa, Kano, and Lagos.
The directive underscores CBN’s commitment to restoring stability in the FX market and ensuring transparency and efficiency in forex transactions across Nigeria.
For further updates and compliance guidelines, BDC operators and stakeholders are advised to adhere strictly to CBN’s directives and monitor official channels for any revisions or additional instructions.
This initiative by the CBN marks a significant step towards addressing exchange rate distortions and fostering a more predictable forex market environment in Nigeria.