CBN Resumes Sale of $10,000 to BDCs at N1,251/$1

Olayemi Cardoso,

In a significant development impacting Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has announced the resumption of the sale of foreign exchange to Bureau De Change (BDC) operators, offering each operator $10,000 at a rate of N1,251 per dollar.

The circular, signed by Dr. Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, marks a pivotal moment following the cessation of foreign exchange sales to BDCs in 2021 under the tenure of the former CBN Governor, Godwin Emefiele.

The directive, communicated to BDC operators via a circular obtained by PUNCH Online, emphasizes that each BDC must adhere to a selling rate not exceeding 1.5 percent above the purchase price, effectively capping the selling rate at N1,269 per dollar.

This announcement comes on the heels of the CBN’s decision in February to allocate foreign exchange worth $20,000 to eligible BDC operators nationwide, signaling a gradual return to normalcy in the forex market segment.

The document underscores the CBN’s commitment to regulating the forex market and ensuring stability amidst evolving economic dynamics. By reinstating the sale of dollars to BDC operators, the central bank aims to enhance liquidity and foster confidence in the foreign exchange market.

The resumption of dollar sales to BDCs is expected to alleviate pressure on the naira and facilitate smoother transactions in the foreign exchange market, benefiting businesses and individuals alike.

As the CBN continues to implement measures to manage foreign exchange reserves and stabilize the exchange rate, stakeholders anticipate further developments aimed at promoting economic resilience and growth in Nigeria.

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