CBN Approves FX Sales to BDCs at N1,580/$ to Boost Market Liquidity

The Central Bank of Nigeria (CBN) has implemented a new directive aimed at increasing the availability of foreign exchange (FX) in the market, approving the sale of dollars to bureau de change (BDC) operators at a rate of N1,580 per dollar. 

 In a circular signed by W.J. Kanya, the acting director of the trade and exchange department, on Friday, September 6, the CBN emphasized that each eligible BDC operator can purchase up to $20,000. 

 This initiative is part of ongoing efforts to meet the growing demand for FX, especially for invisible transactions such as education, medical expenses, and personal travel allowances.

 The CBN’s directive also stipulated that BDC operators are permitted to sell FX to end users at a margin of no more than 1 percent above the purchase rate set by the CBN. 

 However, this restriction is designed to prevent excessive markups and ensure fair pricing for Nigerians needing foreign exchange. 

 The circular further instructed all eligible BDCs to make naira payments into their designated CBN deposit accounts before accessing the approved foreign exchange.

“This move is crucial in addressing the liquidity challenges faced by Nigerians amid the current economic situation. 

 By providing more liquidity into the market, the CBN aims to stabilize the FX market and offer some relief to Nigerians dealing with rising costs and inflation,” the circular read. 

 By making FX more accessible, the CBN hopes to ease financial pressures on the populace and rebuild public trust in the government’s ability to manage the economy. 

 The bank believes this measure will strengthen Nigeria’s economic relationship with its citizens and promote economic stability, as people can access dollars at a reasonable rate without the high volatility seen in parallel markets.