By Tony Obiechina, Abuja
Following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.
To this end, the bank has approved the sale of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day).
This was contained in a circular signed by A. A. Mahdi on behalf of the CBN Acting Director of Trade and Exchange Department and made available in Abuja on Thursday.
The circular reads, “All BDCs are allowed to sell to eligible end-users at a margin not more than one point five percent (1.5%) above the purchase rate from CBN.
“All eligible BDCs are directed to make the naira payment to the listed CBN Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches (Abuja, Awka, Kano and Lagos).
