The Central Bank of Nigeria (CBN) has approved the sale of $20,000 to each eligible Bureau De Change (BDC) at a rate of N1,450 per dollar.
This initiative forms part of ongoing reforms to achieve a market-determined exchange rate for the naira.
According to a release signed by A. A. Mahdi, the Acting Director of Trade and Exchange at the CBN, this rate represents the lower band of the trading rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) from the previous trading day.
This move is expected to address the constant pressure on the naira, which is nearing the N1,600/$1 ceiling, and curb the widening exchange rate premium observed in the parallel market.
In addition, the CBN has stipulated that BDCs must sell FX to eligible end-users at a margin not exceeding 1.5% above the purchase rate, allowing a maximum profit of N21.75 per dollar.
This directive seeks to stabilize the exchange rate and mitigate market distortions. The circular further details that BDCs are required to make naira payments to specific CBN accounts and submit the necessary documentation for disbursement at designated CBN branches.
This marks the fifth attempt by the CBN to sell FX to BDCs following a suspension in 2021 and subsequent revocation of over 4,173 BDC licenses.
With 1,583 approved BDC operators, this initiative could inject approximately $21.58 million into the retail market, helping to narrow the gap between official and parallel market rates.
