Foreign Exchange Liquidity: CBN’s Support for BDC Operators
The Central Bank of Nigeria (CBN) recently announced that it would sell U.S. dollars to Bureau de Change (BDC) operators at a rate of ₦1,590 per dollar.
This move, aimed at boosting liquidity in the foreign exchange market, allows each BDC to purchase up to $20,000 to meet the growing demand for foreign currency, particularly for invisible transactions such as personal and business travel allowances. The CBN’s goal is to enhance liquidity and stabilize the forex market by allowing BDCs to sell the dollars to end-users with a maximum margin of 1% above the purchase rate.
BDC operators have responded positively, indicating that the measure will help them meet customer demand more effectively. This sale is part of broader efforts by the CBN to address ongoing liquidity challenges in Nigeria’s foreign exchange market(