CBN Approves Additional $20,000 Sale to BDCs at N1,590, Caps Profit Margin at 1%

Samuel Mobolaji

The Central Bank of Nigeria (CBN) has announced the sale of an additional $20,000 to each eligible Bureau de Change (BDC) operator in the country.

The apex bank in a circular released on September 25, 2024, and signed by Dr. W.J. Kanya, the Acting Director of the CBN’s Trade & Exchange Department, explained that this sale will occur at a rate of N1,590 per US dollar, which is N10 higher than the previous rate for similar transactions earlier this month.

To ensure transparency and prevent excessive profit margins, the CBN has stipulated that BDC operators can sell the foreign exchange to eligible end-users with a profit margin not exceeding one per cent above the purchase rate.

Eligible BDCs wishing to participate in this transaction must make the necessary naira payments to their respective CBN deposit account numbers and submit payment confirmations along with all required documentation at designated CBN branches to receive the $20,000.

This initiative aims to enhance liquidity in the foreign exchange market, particularly for personal and business transactions classified as invisible, which include payments for services and intangible goods like education and medical expenses abroad.

The latest move marks the second sale of foreign exchange to BDCs this month and the seventh such sale this year. With 1,583 approved BDC operators, this initiative may cost the CBN approximately $63.32 million this month for the two sales.