Roughly three years ago, under the leadership of Godwin Emefiele, the former governor, the CBN discontinued the sale of foreign exchange to Bureau De Change (BDCs). The decision was based on accusations that BDCs were engaging in wholesale FX trading exceeding USD 5000, violating their licenses and Nigeria's FX regulations.
According to a circular released on Tuesday, the CBN will now provide each BDC with $20,000 weekly at a rate of N1,301 per dollar. The BDCs are permitted to sell to end-users with a margin not exceeding one per cent above the purchase rate from the CBN.
Through a new circular, the apex bank said, "The CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at N1,301/$ – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day as of today, February 27 2024)."
All eligible BDCs are now instructed to make Naira payments to the designated CBN foreign currency deposit Naira accounts. After payment, they must submit confirmation and other necessary documentation for disbursement at the appropriate CBN Branches in Abuja, Awka, Lagos, and Kano.
