In a bid to meet the demand for foreign exchange transactions, the Central Bank of Nigeria (CBN) has approved the sale of foreign exchange (FX) to eligible bureau de change (BDC) operators at N1,450|$1

The eligible BDCs would be allowed to buy up to $20k but are to sell to eligible end-users at a margin not more than 1.5 percent above the purchase rate from CBN.

These developments were contained in a statement on Thursday signed by A.A Mahdi, CBN’s acting director of trade and exchange department

The apex bank said it had observed the continued distortions in the retail end of the market, which was feeding into the parallel market and further widening the exchange rate premium

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 widen the exchange rate premium,” CBN said.

“To this end, the CBN has approved the sales 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).”

The financial regulator instructed all eligible BDCs to make naira payments to CBN’s naira deposit account numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches in Abuja, Akwa, Kano and Lagos