Economy, Featured
By Christabel Ejenike
THE Central Bank of Nigeria, CBN, has announced its decision to sell foreign exchange worth $20,000 to eligible Bureau De Change operators across the country at a rate of N1,590 per dollar. This move aims to provide additional liquidity to the retail foreign exchange market and meet the demand for invisible transactions.
In a statement signed by Dr. W. J. Kanya the Ag. Director of the Trade and Exchange Department on 25th September, 2024 the Central Bank has directed that all BDCs are allowed to sell to all eligible end-users at a margin of “Not more than 1%” above the purchase rate from CBN.
Also CBN directed that eligible BDCs interested in this transaction should make Naira payment to the CBN Deposit Account Numbers with them. Additionally “Payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN Branches US$20,000.00. (ABUJA, AWKA, KANO and LAGOS) for collection”
This is the seventh attempt by the CBN to sell FOREX to BDCs after a prolonged suspension in 2021 ¹. The CBN had revoked licenses of over 4,173 BDC operators in February, and with 1,583 approved BDC operators, about $31.66 million may be injected into the retail end of the market.
The naira recently dropped in value against the dollar to N1,658.48 in the Nigerian Autonomous Foreign Exchange and N1,670 in the parallel market. This move is expected to curb the widening exchange rate premium observed in the parallel market.
26th September, 2024.
C.E.
Tags: Bureau De Change Central Bank of Nigeria Dr. W. J. Kanya
