CBN approves FX sale to BDCs at N1,590/$

The Central Bank of Nigeria (CBN) has authorized another round of foreign exchange (FX) sales to eligible Bureau De Change (BDC) operators at a rate of N1,590 per dollar.

This move is aimed at meeting the growing demand for invisible transactions, such as personal travel allowances, medical expenses, and tuition fees.

In a circular issued yesterday, titled ‘Sales of Foreign Exchange to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions,’ the CBN outlined its plan to sell $20,000 to each eligible BDC operator at the specified rate of N1,590 per dollar.

The circular was signed by W.J. Kanya, the acting director of the Trade and Exchange Department.

This decision comes as part of the CBN’s ongoing efforts to stabilize the exchange rate and provide liquidity to the retail segment of the foreign exchange market.

By supplying FX directly to BDCs, the CBN aims to alleviate pressure on the parallel market and offer relief to those in need of foreign currency for personal and non-commercial transactions.

The approved FX sale is expected to help reduce the demand-supply gap in the market, ensuring that individuals and businesses can access foreign currency at a more regulated rate.

The apex bank stated: “This is to inform the Bureau De Change (BDC) Operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market.

“To this end, CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,590/5. This is to meet the demand for invisible transactions.

“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

“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN Deposit Account Numbers with them.”