The Central Bank of Nigeria has directed Bureau De Change operators to sell forex at a maximum profit margin of 1.5 percent, aiming to correct market distortions.
It said this in a circular to BDC operators and the public by Aliyu Mahdi, Acting Director of the Trade and Exchange Department.
In the circular on Thursday, the CBN said that the directive was to normalise the foreign exchange market through ongoing reforms.
The circular, with the title: “Sales of Foreign Exchange To BDCS To Meet Retail Market Demand For Eligible Invisible Transactions,” outlined the rationale behind the directive.
The regulator said that persistent distortions in the retail market were contributing to disparities in exchange rates, particularly in the parallel market.
“To address this issue, the CBN has authorised the sale of FX to eligible Bureau De Change (BDCs) to satisfy demands for invisible transactions,” it stated.
Also Read:
- Fidelity Bank records 238% oversubscription in first phase of equity capital raise
- Akwa Ibom doles out N550m farmers, business owners, others
- Late HoS: Sanwo-Olu, Fashola, Speaker pay last respect
- Otu orders expanded healthcare for vulnerables, sponsor six-year old strangulated hernia surgery
- Baba Ijebu mourns as Ogun top monarch, Oba Idowu-Basibo, joins ancestors
Under the directive, each BDC is authorised to purchase $20,000 at a rate of N1,450 per dollar, reflecting the lower band of the trading rate observed in the previous session at Nigeria Autonomous Foreign Exchange Market.
“All BDCs are permitted to sell to eligible end-users at a profit margin not exceeding one point five per cent (1.5%) above the CBN purchase rate,” the bank clarified.
The apex bank instructed eligible BDCs to remit Naira payments to specified CBN Naira Deposit Account Numbers and submit payment confirmations alongside required documentation for disbursement at designated CBN branches in Abuja, Awka, Kano and Lagos.
Follow The Eagle Online Channel on WhatsApp
