In a recent development, the Central Bank of Nigeria has announced the resumption of foreign exchange sales to eligible Bureau De Change operators, offering $20,000 each. This decision follows a suspension lasting more than two years, initiated by the former CBN governor, Godwin Emefiele.
The apex bank, through a circular signed by the Director of Trade and Exchange Department, Hassan Mahmud, aims to address distortions in the retail segment of Nigeria’s forex market and bridge the widening exchange rate gap. The allocated foreign exchange will be sold at a rate of N1,301/$, reflecting the lower band rate of spot transactions at the Nigerian Autonomous Foreign Exchange Market on the previous trading day, dated February 27, 2024.
The circular emphasizes the ongoing forex market reforms to establish a market-determined Naira exchange rate. The CBN cites observed price distortions at the retail end, contributing to parallel market fluctuations. BDCs are authorized to sell to end-users with a margin not exceeding one percent above the CBN’s purchase rate.
Eligible BDCs are instructed to make Naira payments to designated CBN Foreign Currency Deposit Naira Accounts and submit necessary documentation to complete the transaction. This move signals a strategic step towards stabilizing the foreign exchange market and addressing lingering challenges in the retail segment.
