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CBN Resumes Forex Sales To Bureau de Change Operators



Nigerian Banks Introduce New Requirement For Customers Seeking Forex

The Central Bank of Nigeria (CBN) has announced the resumption of foreign exchange sales to eligible Bureau de Change (BDC) operators, providing each operator with $20,000.

News About Nigeria reports that this decision comes more than two years after the former CBN governor, Godwin Emefiele, suspended the sale of forex to BDC operators.

The circular, titled “Sale of Foreign Exchange to Bureau de Change Operators to Meet Retail Demand for Eligible Invisible Transactions,” was issued and signed by the Director of the Trade and Exchange Department, Hassan Mahmud, on Tuesday.

According to the circular, the allocation will be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market as of the previous trading day, dated February 27, 2024.

The circular states, “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.”

Eligible BDCs are allowed to sell to end-users at a margin not more than one percent (1 percent) above the purchase rate from CBN.

The CBN directed eligible BDCs to make Naira payments to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment with other necessary documentation.

In recent efforts to stabilise the value of the naira, the CBN has implemented several reforms, including probing and clearing the FX backlog, limiting forex for foreign education and medical tourism, increasing BDCs’ minimum share capital, and curbing FX speculators.