Resumption of Dollar Sales to Bureau De Change Operators by CBN

The Central Bank of Nigeria (CBN) has made an announcement regarding the resumption of dollar sales to Bureau de Change (BDC) operators in a bid to attain a more stable Naira exchange rate.

To address disruptions in the foreign exchange market, the CBN has reintroduced dollar sales to BDC operators.

In a circular to BDC operators and the public, the CBN highlighted its goal of achieving exchange rate stability for the Naira.

The circular, signed by A.A Mahdi For Ag. Director Trade and Exchange Department of the CBN, pointed out the market distortions affecting the parallel market and widening the exchange rate premium.

According to the new regulations, eligible BDCs can buy a maximum of $20,000 at a fixed rate of N1,450 per dollar. This rate is aligned with the previous day’s trading rate on the NAFEX window.

BDCs can sell dollars to end-users with a maximum margin of 1.5 percent above the CBN’s purchase rate.

For compliance, BDCs must deposit Naira into designated CBN accounts and provide necessary documentation at specific branches in Abuja, Awka, Kano, and Lagos.

The CBN’s decision stems from the widening gap between official and parallel market rates attributed to retail market distortions.

The CBN hopes that this initiative will stabilize the forex market and alleviate pressure on the Naira.