In a strategic move to increase liquidity and strengthen the naira against manipulators, the Central Bank of Nigeria (CBN), on Tuesday, announced the sale of forex to Bureau de Change (BDC) operators in the country at N1,301/$1.
Hassan Mahmud, the director of Trade and Exchange Department at the apex bank, made the disclosure in a memo.
According to him, BDC operators are expected to sell to customers at not more than 1% above the purchase rate from the CBN.
The naira recently traded as high as N1,800 to the dollar, in what Nigerians termed a death knell.
Mahmud said: “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.
“To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$ – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024).
“All BCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1 %) above the purchase rate from CBN.
“All eligible BDCs are directed to make the Naira payment to the designated CB ForeignCurrency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentations, for disbursement at the appropriate CBN Branches – Abuja Awk, Lagos and Kano).”