The Central Bank of Nigeria has begin dollar sales to Bureau De Change, with the sales of $15.7 million to 785 BDCs across the country.

The apex bank said $20,000 will be sold to each Bureau De Change at N1,301/$. The BDCs are to sell to the end users at a price not more than 1% of the purchase price.

Dr. Hassan Mahmud the Director Trade and Exchange Department revealed this in a circular theme, “Sale of Foreign Exchange To Bureau De Change Operators to meet Retail Demand For Eligible Invisible Transactions.”

He said: “Following the on-going reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.

The CBN approved the sales of foreign exchange to eligible Bureau De Change to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$  (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024).

“All BDCs are allowed to sell to end-users at a rate NOT MORE THAN (1 %) above the purchase rate from CBN.

“All competent BDCs are directed to make the Naira payment to the appointed CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentations, for disbursement at the appropriate CBN Branches – ABUJA, AWKA, LAGOS and KANO).”

Also the apex bank released guidelines for disbursement and monitoring of the dollar sales by BDCs.

Among other things, the CBN  peg sale of Personal Travel Allowance, PTA and Business Travel Allowance, BTA by BDCs   to $4,000 and $5,000 per individual.

According to the guidelines, “All BDCs allocated Foreign Exchange, shall keep records of beneficiaries and amount sold to each beneficiary;

“BDCs shall not sell more than $4,000 per individual for PTA and $5,000 for BTA;

All BDCs allocated Foreign Exchange shall not re-sell at more than 1% spread to end users.

All BDCs shall display their buying and selling rate at their outlet;

All BDCs transactions shall be conducted in designated approved BDCs office/outlet addresses. Street hawking is strictly prohibited;

“All BDC allocated Foreign Exchange, shall make daily rendition of the sale of Foreign Exchange to end user before 10am the next business day on the Financial Institutions Foreign Exchange Reporting System (FIFX) portal;

The CBN Examination team shall periodically conduct on the spot examination of Foreign Exchange disbursements by BDCs;