Central Bank of Nigeria (CBN) has announced the resumption of foreign exchange (forex) sales to Bureau De Change (BDC) operators, ending a prolonged ban on such transactions.
In a circular issued by Dr. Hassan Mahmud, the Director of the Trade and Exchange Department, the CBN disclosed the sale of $10,000 to each BDC at a rate of N1,251/$1.
BDC operators are directed to sell the purchased dollars to eligible customers at a maximum rate of 1.5 percent above the purchase price, translating to a ceiling selling rate of N1,269/$1.
This decision marks a significant policy shift from the stance adopted more than two years ago when former CBN Governor Godwin Emefiele halted forex sales to BDC operators. In February, the CBN had announced the allocation of $20,000 to each eligible Bureau De Change operator across Nigeria.
The circular from the CBN read, “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB approved a second tranche of sale of FX to eligible BDCs.
“We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. The BDCs are to sell to eligible end-users at a spread of not more than 1.5 per cent above the purchase price.”
The resumption of forex sales to BDC operators is anticipated to provide businesses and individuals with easier access to foreign currency, thereby stimulating economic activities and fostering stability in the foreign exchange market.
