28/02/2024
MARKET NEWS…….
The Central Bank of Nigeria has announced that it will resume selling foreign exchange to Bureau De Change (BDC) operators after a three-year hiatus. Each eligible BDC operator will receive an allocation of $20,000. This decision follows the suspension of foreign exchange sales to BDC operators three years ago by the former CBN governor, Godwin Emefiele. The new circular authorizing the sale of forex to BDC operators was issued by the Director of the Trade and Exchange Department, Hassan Mahmud. Out of the 5,690 BDC operators nationwide, 1,373 have been screened to receive the allocation, with specific numbers allocated to different regions such as Abuja, Awka, Kano, and Lagos.
The CBN had previously halted the sale of foreign exchange to BDCs in July 2021, citing violations of regulations and accusations of facilitating corruption. The recent circular aims to address distortions in the retail foreign exchange market and bridge the widening gap in exchange rates. The allocation will be sold at a rate of N1,301/$, with BDCs permitted to sell to end-users at a margin not exceeding one percent above the purchase rate from the CBN. This move is part of the CBN’s efforts to stabilize the naira and address issues in the foreign exchange market, including clearing FX backlog, restricting forex for certain purposes, and increasing BDCs’ minimum share capital.