By Chidiebere Ugwu
The Central Bank of Nigeria on Thursday announced the approval of sales of Foreign Exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
According to a statement signed by A.A Mahdi, Acting. Director Trade & Exchange Department, the sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day).
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The statement titled: ‘sales of foreign exchange to BDCs to meet retail market demand for eligible invisible transactions’ reads: “Following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widen the exchange rate premium.
“To this end, the CBN has approved the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
“The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day).
“All BDCs are allowed to sell to eligible end-users at a margin NOT MORE THAN one point five percent (1.5 %) above the purchase rate from CBN.
“All eligible BDCs are directed to make the Naira payment to the listed CBN Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches — (Abuja, Awka, Kano and Lagos) Please be guid accordingly.”
