CBN approves sales of Dollar to elegible BDC at N1580 exchange rate

In a strategic move to stabilize the forex market, the Central Bank of Nigeria (CBN) has approved the sale of $20,000 each to eligible Bureau De Change (BDC) operators at an exchange rate of N1,580 per dollar. This announcement, made in a notice signed by CBN’s Acting Director of Trade and Exchange, W. Kanya, aims to ease the pressure on the naira and address demand for invisible transactions such as personal travel allowances, medicals, and tuition.

According to the CBN, all BDCs are permitted to sell to end-users at a margin not exceeding 1% above the purchase rate, ensuring a fair market environment. The CBN has instructed interested BDCs to make naira payments into designated CBN deposit accounts and submit the necessary documentation at specific CBN branches in Abuja, Awka, Kano, and Lagos for the collection of the allocated funds.

This intervention comes as the naira continues its downward slide, reaching N1,665 per dollar in the black market, a sharp contrast to the official rate where the naira appreciated to N1,593.32 per dollar on Friday. The CBN’s approval of this dollar sale to BDCs is expected to provide some relief to the struggling currency and reduce the widening gap between the official and parallel market rates.

The apex bank’s latest move signals a renewed effort to stabilize the forex market and curb the naira’s depreciation, with hopes that this measure will bolster the currency’s value and restore confidence among forex users and investors alike.