The Central Bank of Nigeria (CBN) has increased liquidity in the foreign exchange market by selling U.S. dollars to Bureau De Change (BDC) operators at a rate of N1,580 per dollar.
The decision aims to address the retail market demand for eligible invisible transactions such as personal travel allowances, business travel allowances, medical bills, and school fees.
According to a statement issued by W. J. Kanya, acting director of Trade & Exchange Department, each eligible BDC will be allocated $20,000 at the approved rate. In turn, BDCs are authorised to sell to end-users at a margin not exceeding one percent above the purchase rate from the CBN.
To participate in this transaction, eligible BDCs are instructed to make the necessary Naira payments into their designated CBN deposit accounts. Following this, they must provide payment confirmations and submit all required documentation at the appropriate CBN branches located in Abuja, Awka, Kano, and Lagos to collect their dollar allocation.
The move is part of the CBN’s ongoing efforts to stabilise the foreign exchange market by ensuring adequate supply to meet the needs of the retail segment, particularly for transactions that do not involve the importation of goods.
BDCs and members of the public are urged to take note of these new guidelines and comply accordingly.
The naira ended the official foreign exchange (FX) market on a positive note on Friday, rising by 2.9 percent on increased dollar supply worth $245.17 million.
The naira gained as the dollar was quoted at N1,593.32 on Friday compared to N1,639.41 quoted on Thursday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Securities Exchange Limited.
For three trading days before the gain, the local currency recorded losses due to strong demand for dollars by the end users.
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