The Central Bank of Nigeria (CBN) has resumed the sale of foreign currency to Bureau De Change (BDC) operators.
However, with this resumption comes a crucial restriction: BDCs are now limited to selling dollars at a maximum rate of N1,269 per dollar.
This decision was communicated to the BDC operators via a circular issued by the CBN, stating that each BDC was allocated $10,000 at a rate of N1,251 per dollar.
The circular also outlined that BDCs are mandated to sell the allocated dollars to eligible end-users with a spread of not more than 1.5% above the purchase price, translating to a maximum selling rate of N1,269 per dollar.
The resumption of forex sales to BDCs marks a significant shift in the CBN’s approach to managing the foreign exchange market, particularly after a period of prohibition in 2021 and the subsequent revocation of licenses for over 4,000 BDC operators earlier this year.
With approximately 1,500 BDC licenses remaining, it’s estimated that over $15 million has been injected into the retail end of the forex market.
This move by the CBN signals a concerted effort to enhance liquidity in the retail segment of the forex market and reduce the gap between official and parallel market rates.
It’s anticipated that improved liquidity will make forex more accessible to retail and small-scale enterprises, fostering a more transparent and efficient market in the process.
