The Central Bank of Nigeria has declared its intent to sell $20,000 in foreign exchange to each eligible Bureau De Change operator nationwide, marking a reversal of the policy implemented over two years ago by the former CBN governor, Godwin Emefiele.
The decision, outlined in a recent circular signed by Hassan Mahmud, the Director of Trade and Exchange Department, is aimed at addressing distortions in the retail segment of Nigeria’s foreign exchange market and narrowing the gap in exchange rates.
The allocated amount will be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market on the previous trading day, dated February 27, 2024.
The circular emphasizes the CBN’s commitment to achieving a market-determined exchange rate for the Naira and directs eligible BDCs to make Naira payments to designated CBN Foreign Currency Deposit Naira Accounts for disbursement in specific branches across Abuja, Awka, Lagos, and Kano.
These measures are part of the CBN’s ongoing efforts to stabilize the Naira, including addressing FX backlog, restricting forex for foreign education and medical tourism, raising BDCs’ minimum share capital, and combating FX speculators.
