As part of its ongoing reforms, the Central Bank of Nigeria (CBN) has approved the distribution of $20,000 to every qualifying Bureau De Change (BDC) operators nationwide.
In a circular, Dr. Hassan Mahmud, Director of the CBN’s Trade and currency Department, stated that the action was taken to address anomalies in the country’s retail foreign currency market.
BDC Operators were permitted to sell to end users at a margin not to exceed one percent over the buy rate from CBN, according to the circular that was sent to them.
“Following the on-going reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira, the CBN has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.
“To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
“The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$ – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024).
“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN.
“All eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentations, for disbursement at the appropriate CBN Branches – ABUJA, AWKA, LAGOS and KAΝΟ),” it started.
The guideline was attached for the BDCs’ disbursement and monitoring of utilization. It noted that all those allocated Foreign Exchange, must keep records of beneficiaries and amount sold to each of them.
It said BDCs should not sell more than 4,000 dollars per individual for Personal Travel Allowance and 5,000 dollars for Business Travel Allowances.
It listed other guidelines including, BDCs allocated buying and selling rate, prohibition of street hawking of forex, daily provision of the sale of Foreign Exchange to end users, among others.
