In a move aimed at boosting liquidity in the foreign exchange market and catering to the increasing demand for invisible transactions, the Central Bank of Nigeria (CBN) has approved the sale of $20,000 to each eligible Bureau De Change (BDC) operator at the rate of N1,590 per dollar.
The decision was announced in a circular titled "Sales of Foreign Exchange to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions," signed by W.J Kanya, the Acting Director of the Trade and Exchange Department at the CBN.
The apex bank stated that this intervention is intended to provide additional liquidity to the BDC segment of the foreign exchange market. The CBN emphasized that all eligible BDCs are allowed to sell to end-users at a margin of not more than 1% above the purchase rate from the CBN.
Interested BDCs are directed to make Naira payments to the designated CBN Deposit Account Numbers and submit the necessary documentation for disbursement at the appropriate CBN branches in Abuja, Awka, Kano, and Lagos.
This move by the CBN is expected to alleviate the current forex crunch and bring relief to individuals and businesses relying on foreign exchange for essential services such as personal travel allowances (PTA), business travel allowances (BTA), tuition fees, and medical bills.
